The markets are on fire! We’ve had a 100 point swing in RUT in 6 days!
Today, I adjusted the November M3 trade buy rolling the 600 put butterfly up to a 640 put butterfly. I also sold the 42 IWM call and bought a 48 IWM call which took a few hundred dollars out of the trade. There was some drama and I did get beat up a little in the transition but nothing too drastic. I had an order in to sell the 600 butterfly and one to buy the 640, both at the same time, towards the end of the day. The 600 sold and, as I was trying to get the 640 filled, the market when started pulling down pretty hard off its highs. Not knowing how far it was going to go, I hit the “bid” to get rid of the 42 call so that I would be flat till I could go back and take a look at what was going on. This just happened to be when the 640 butterfly filled and the market started back up again…. so I decided to pay up a little more than normal for a 48 call. I ended up losing about $50 in execution which not bad considering what happened.
The position is currently up about $120 and is shown below:
I also adjusted the M9 or 55 day trade today. Luckily this transaction went off as planned! Since RUT was past both the last add point and the first roll point, I added butterflies both at 670 and 690. And sold the 630 butterflies. The position currently stands with 6 butterflies. 2 at 650, 2 at 670 and 2 at 690. The position is down about $400 but is looking really good, especially if we end up hanging here for a while and then drifting back 40 or 50 points. See below:
That’s it for now!
Happy Trading 🙂