I had to adjust this today to deal with the sagging T+0 line from the extreme up move since last Friday.
I’ve added 10 (1140/1120) put credit spreads to flatten the T+0 line. Trade is slightly positive at the moment, which is to be expected when it’s nearly outside the tent. The longer out M3s are trades really designed for the time in the month when the trade falls back within the tent. It usually happens and that’s when we will hit our profit targets and pull out. As the month goes on, we continue to manage the risk and leave an opportunity for the trade to profit within the tent.
We put it on on Sept 23rd when RUT was at around the 1145 mark. It then proceeded to fall to about 1075 where we added some 1060 BFs. It’s now back to 1150. THat’s a nice 7% down and 7% move in a matter of what, a week?
