With all the movement in the market this week you would think there is more to say about the RUT trade I am highlighting this month… not so. There has been no need to make any adjustments so far, and things still look pretty good. As you can see by the picture, we are profitable (currently about 6%) and Deltas are nicely under control.
The only challenge I have is patience, but that’s what it takes in this game. We’ve been in the Condor for about 25 days, and in the Calendar for 11 days. Sometimes the profits come faster when there is only a Condor on and volatility drops quickly, but that can also work against you. On the other hand, when volatility is flatter (caused by adding the Calendar) we really just have to wait for the Theta to tick away. At the current rate, we will be at our profit target in about another week, but that can always be offset by adverse price movement.
One thing to note about the imbedded Calendar… we are very close to the target on that. If price doesn’t move too much and IV doesn’t fall too much (now there’s a trick) we could be taking that portion of the trade off by Friday. This is what SnapTrading is all about… spending most of our trading effort doing nothing. That’s why I like it, and why it fits well into the worker bee’s lifestyle.
Good Trading…
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