The RUT was on fire today! As expected, I locked down the Dec M3 today to limit losses. I bought 3 830/840 verticals and sold 1 770 call and plan to expire the trade at a small loss of around $400 after commissions. If the market pulls back, then we may end up making something but I am not expecting anything.
On the January M3, I entered the 2nd 1/2 of the position. I bought 5 820 butterflies, 1 750 call and 3 800/810 verticals. The position is down a few hundred dollars but I REALLY like the positioning this month. We shall see how it goes.
On the January BB – I rolled the 810 butterflies to 850 according to plan. The current position is down about 2/3 of max loss which should be expected in a “bearish” trade that started with RUT at 800 a few weeks ago, especially with the low volatility. I’d expect this trade to hold out to around 860 or possibly higher if the move slows down or stalls.
That’s all for now, Happy Trading!