Wednesday, April 29, 2009

RUT Update 4-29

As discussed yesterday, we reached a point where it was time to take off the RUT trade we are highlighting this month.  I had hoped for about an 8% overall return, but we ended up with 7% overall.  Still pretty nice for the month.  The main reason is that the market went ripping up today and I didn't quite get as good a price as I wanted on closing the call spread.  Overall, no complaints.

That's it for this one.  It was complicated, but profitable.  Next month I plan to simplify things a bit by highlighting a calendar trade.  It will be a couple of weeks I think, but maybe not.  This is actually something to watch right now... the RVX - implied volatility on the RUT - is resting on the support line we have been tracking for several weeks. 

Good Trading...

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