Overview: Last Thursday I closed the April 2015 $RUT Butterfly. Thursday was an up day for the Russell and price was moving outside of the expiration break-even with under 20 days to expiration. In hindsight, I should have adjusted the trade and sat in it a little longer. However, I was in the process of […]
Overview: Last Monday I closed the March 2015 $RUT Butterfly. I exited the trade a little earlier than I planned partially because I’m in the process of moving and am having a harder time monitoring the markets and my positions. That being said, the trade did okay and, despite some poor market timing on my […]
Overview: Do you trust $RUT? In my mind, $RUT can’t be trusted. Yesterday I was watching the market and beginning to feel slightly uncomfortable with $RUT and the potential for the market to move higher. As a result, I decided to adjust the March 2015 Butterfly again by closing the lowest Butterfly. An image of […]
Part of any good options trading plan is knowing when and how you’re going to adjust your positions. However, I don’t always believe in hard rules for options trading. The reality is that the positions and the markets change over time and, in my opinion, that makes it more practical to have guidelines (rather than […]
Overview: The Russell 2000 pushed up to close at a new all time high yesterday, which is just a few points shy of the next adjustment point. In the video below I take a look at the next adjustment for the position if the market continues higher this morning. At this point, I’m planning to […]
Overview: I’m sorry to say that I’m always bearish. I take that back . . . I’m not sorry. Unfortunately for myself and any other Russell bears out there, $RUT snapped higher this week and that’s putting the Butterfly position under a little pressure. The next adjustment point for the Butterfly is a $RUT price […]