RUT Calendar Update 7-1

It's been a few days since I updated the status of my monthly Featured Trade, which this month is a triple calendar on RUT. At this point, things are going along, but we're not in the greatest position. I will, of course, play by the rules and follow my trade plan for this trade, but my confidence level in a profitable trade is drooping, along with the P&L graph.













As you can see, the current price is to the far right of the tent, and the expiration P&L (the green line) has drooped substantially. This happens when Implied Volatility drops. To get a good idea of what's happened, take a look at the chart of the RVX - the index which tracks Implied Volatility of RUT.

If IV had held up, even a little bit, the P&L graph would look much different. It just goes to show... when you think IV is low, it can go much lower. This can still be a profitable trade, but it will mean that IV cannot go much lower. I'm also keeping my eye on (an alert is set) an adjustment that will be required at the 520 level, which is the pointy area on the far right.

Good Trading...