RUT is stagnant at the 1160-1165 area. We’re up 85 points from the low and I am in no huge rush to adjust on the upside unless the market tells me to by going above the 1170 area convincingly. I’ve added some 1190 call calendars to get some theta while we wait either way. The positions aren’t decaying quickly but time decay is not linear and usually comes in bunches. Not to mention, we’re not really under our tents for many of the trades. Ideally we have a nice pullback sometime soon. But in any case, with an extended up move, we’ll roll forward and do just fine.
Today, I also entered the December bearish butterfly trade with 2 units 1140 BF @ $9.63. I don’t think we have that much upside without some back tracing first. This trade should do well enough. I think the entry is decent. I think we end the year probably around 1200 area on the RUT. Nov/Dec are historically strong months and usually always there is a rally within that time period. This year feels a bit different with a lot of tail winds. Not that that opinion means much.
As for upcoming trades:
On Thursday I will enter more Dec M3 positions at 57 DTE and I’ll be entering a one unit 30 day rock position
On the following Thursday I’ll be entering Rhino positions for January at 77 DTE. That should conclude the trade entries for this month.
Rhino M3
Sitting right at the edge of the tent. Not much to do now. Just waiting.
Nov M3
Outside the tent. Added some verticals and actually some Nov 1190 call calendars as an upside hedge to keep the theta strong. Waiting for a move in either direction. If we make any movement above 1170, I’ll roll the BFs forward.
Dec M3
Nothing going on with this one yet.
