I was expecting, and planned for, RUT to push higher into the resistance area today. Well…. Due to a combination of the unexpected large gap down this morning and how close the November trades are to expiration, I closed the November bearish butterfly this morning. The results were a profit of $1766 on a total investment of $15,084 for a return of 11.7%. Not bad considering the way the market has been racing around lately.
I decided to stay in the November M3 trade as this trade was positioned a bit better for the move down today. I did end up reversing the trade I did yesterday and sold 1 – 720/730 call spread. I’m going to let this one run a few more days (as long as the market doesn’t fall apart) to see if we can get $750 + out of it. The current position is up around $500 and is shown below:
Both December trades remain untouched.
That’s all folks!
Make it an awesome day!
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