6/15
This position has gone against me almost from day 1. The RUT closed near 500 and rallied up to 535 in a little more than a week. Given that this is expiration week, I was counting on a pullback. Actually I was counting on a pullback for the past two weeks.
I exited the positions with these prices: 2.22 (+13%), 2.33 (+7%), 2.21 (+14%). The yields are profit / risk.
Holding period: 20 days. This is quite long. The June expiration is almost a full 30 days, unlike May expiration which was shorter.
The horizontal line is when I put on the trade. As you can see the RUT rallied well above my short strike (520) and it stayed there for several days, until it pulled back today.
5/26
The RUT rallied past 500 to close at 500.3 up +4.75%. The IWM closed on higher volume, but the SPY did not. Durable goods and GDP numbers are coming out Thursday and Friday, respectively. It will be interesting to see if the rally will continue or if we pull back. Ideally it would be better for a pull-back, then we can continue to rally in the summer.
I entered into several RUT Call 520/530 verticals at several prices:
SOLD VERTICAL RUT 100 JUN 09 520/530 CALL @2.85 ISE, RUT MARK 496.79,
SOLD VERTICAL RUT 100 JUN 09 520/530 CALL @3.10 ISE, RUT MARK 500.04 (STK)
SOLD VERTICAL RUT 100 JUN 09 520/530 CALL @3.18 ISE, RUT MARK 499.83
Reason for entry: Think today's move is overextended.
Exit: watch the market on how it will react to the Durable goods and GDP numbers coming at the end of the week.
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