==Update Market Close ==
Another roller coaster day. During the open I just couldn’t get good prices for the spreads. It made sense, the market fell about 30 points and then recovered. We add a lot of adjustments and we’re heading into tomorrow. We’re slightly delta negative (we don’t like too much “up”) and we have an extreme amount of daily time decay. I’ll close tomorrow regardless. I can’t wait to get out of these large MIC trades. Getting tired of them. Looking forward to a nicely diversified lower maintenance portfolio.
==Update 9:36 Am EST==
What a perfect open. Looking at winding down the trade.
At close on Friday I bought a bit of VNR (vanguard natural resources) as it was trading below book value. It was good for about 1500 profit today.
It’s an hour before market open and the futures are acting perfectly for my trade. I’ll close today or latest tomorrow depending on the volatility collapse in the pricing as we edge near expiration. I’ll likely scale out through out the day but I don’t want to over pay to close the ‘way out of the money’ credit spreads. They expire Thursday and we’ve got room but at the same time, things are volatile and can turn on a dime. I’ll weigh the options at open (no pun intended)
Right now on SPX we have (SPX currently sitting at 2012)
1920/1940 Credit Spread
1930/1950 Credit Spread
On RUT we have (RUT currently sitting at 1157)
1055/1075 Credit Spread
1110/1090 Credit Spread
They should be able to be closed at a very good prices. I suspect I can end this trade at a very healthy return.