I closed off some of my upside hedges at rut 1257 which was close to 1260 where I don’t think we will break above sustained. I view it as major resistance. I may start looking at more Rhinos and even some bearish butterflies here once I get back in front of the computer.
I think all the trades for Oct and Nov are setup to put this year in a nice profit zone. We are quite over extended due to the maniacal up move from Feb lows (33%). Any 5-10% down move would make this year. I’ve been trading the rhino mostly by guidelines but at times I’ve been in and out of futures and call hedges and so far all of those have been profitable. It’s doubtful that I will use those going forward. They are mostly put on for events and from conclusions based on technicals. When I do put on a futures hedge, I usually replace by DITM calls soon after when I can.
More to come later.