Tuesday, June 2, 2009

RUT Calendar Update - EXIT

Today was the final day of our featured monthly trade... I decided to throw in the towell on the RUT Calendar. I suppose "throw in the towell" isn't exactly right, since we garnered a nice profit for the month; but I usually like to see 15% or so before a take it off.

In this case, it seems that things were not going our way. Since we put the trade on, nearly a month ago, implied volatility has dropped tremendously. The market is sucking the value out of the calendar, and it may very well continue to drop. This morning there was just a slight pullback and it made since to cash in my chips. It was up about 10%, but as usual commissions and slippage take a little, so 8.98% was the final tally for the trade. I'll take it.

Good Trading...

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