No Fill on RUT

RUT rallied today and I never got the fill. This changes my tactic. I will now be waiting to enter the Call credit spread when RUT hits resistance.

RUT PUT Credit Spreads

Click to enlarge

RUT June options contract have 31 days to expiry, hence plenty of time value in them. Based on the technical situation I placed to the following order:

Sell to open 380 June puts
Buy to open 370 June Puts
For credit of 0.42 per contract

I will Wait to open call positions if the RUT rallies.

Technically RUT has had a big rally and will possibly retrace a bit. I've placed my orders below the low of the 23% retracement area, which is also below the 20MA.

If RUT reaches 539 I will open the call positions.

Still waiting

It's been 2 weeks since my options expired, I've not placed trades yet for a reason. I'll be moving to a safer strategy and be protecting my positions hence doing a bit of reading and back testing.

Options Expired

RUT options have expired so I get to keep all the premium. Will wait for settlement price to come out, which is Saturday morning (UK).

I should have a very nice return on this.

2 days to go

(click image to enlarge)

As I write only 2 more trading days to go. The market is currently at 468 which is still in safe areas as long as it holds below 471 the weekly resistance line. The price has also approached the downtrend line and will possible pull back sligthly before a breakout if any. There is still a 50 point cushion to reach my short call at 520.

Looking good.... time is on my side

(Click image to enlarge)

I.m still in the trade, I have another 8 days to expiry of the Russell 2000 April options. Both of my options strikes puts and calls are around 100 points away from the current price. Usually I would close both orders but we only have another 5 trading days if you consider the bank holidays and weekend.

I've put up 2 charts line and candle. We are not out of the woods yet, the momentum has fallen off causing a negative divergence, which is pulling the price down. If the price closes below the MA20 (purple) we should see a fall back to 385 support taken from a previous low.

Good breakout

(click image to enlarge)

A quick update. The market seems to be breaking out and enjoying a rally. My positions are still in tact. As we speak, 4:30pm GMT, RUT is above the blue trend line 443, if it can close above it we have could have another run up to the red line. This is the 78% Fib retracement level. I've taken of the grid to make it easire to read. I've also placed to charts side by side to make it easy to read. One line chart and one candle chart.

I am waiting for a touch and possible reversal or pull back of the 78% mark before I close out my Call options. I do not want to risk being exercised. That's it for now.