Trade Plan (Oct M3 Trades)

The October trades got brutalized today. On Friday afternoon the RUT touched just below 1080 and now it’s closing Monday at 1142. That’s a 6% move in a single days worth of trading. The trade type cannot withstand that kind of movement this close to expiry. I adjusted in a flurry on Friday and at the end of the day the trades were OK. I was a bit uncomfortable with a fall in volatility and a rise the RUT but everything was in decent shape, the T+0 lines were relatively flat. Today it gapped open and didn’t stop. I did some moderate adjusting this AM but it wasn’t enough and the trades lost a lot of their profits with a big reduction in the volatility and an oversized moved to the upside. It is what it is. I’ll be looking at them tonight to see what we can do but likely I’ll start to peel them off and we’ll take whatever profits are there. The recovery from Aug 24 goes very slowly.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.