The RUT finally backed off a little. This put the Dec Bearish Butterfly at the peak of the T+0 line on my expiration graph and made an excellent time to exit. The position ended up being exited at a very small loss of -$855 after commissions or -1.2% on our $50,000 planned capital. Considering the double whipsaw and the extreme move up into expiration, I am very happy with the results. This rounds off another good year for the Bearish Butterfly and I am looking forward to 2013!
The December M3 is still open, I am looking for an opportunity to close this at a small profit. We shall see what happens today.
The Jan m3 and Bearish Butterflies are unchanged.
That is all for now, make it an awesome weekend!
What made you decide to exit the Jan bearish butterfly? Expiration is not until next week.
I did not exit the January position, I exited the December Bearish Butterfly position. It is not uncommon for me to exit a position at the peak of my T+0 line close to expiration if the market is not acting as I expected, especially with looming news that has a potential to create a substantial move. Basically, I currently feel that the risk is too high for the potential reward this close to expiration.