6/9/08 - Wow, this market is huge!! Last night I decided to break my own conviction (of not trading until the elections are over) and dip my toe in the water - I just couldn’t resist the huge RVX reading over 55 and decided to sell a couple of put spreads, one for November and one for December just to see if I could ride this out to maybe make the basis of a nice looking IC somewhere down the track. So, I sold this November one for $1.89 and am risking $1,000 over 45 days.
7/11/08 - There are only 14 days left to expiry, and the RUT price has dropped below the 500 mark again. As a result, I decided to roll this vertical forward from November 08 to January 09 thereby giving RUT more time to consolidate and move slightly higher again. This roll trade was done for $0 plus commissions. There are now 70 days until Jan 09 expiry.
17/12/08 - There are 30 days left until January expiry, and I have decided to roll it up and out, so I have rolled from Jan to Mar, and from 500/490 to 520/510 for a $0.25 credit, meaning I now have the trade on for a total of $2.14 credit.