Let's make it official. I just did what I said in the previous post. The market has continued down.
You may have to make an adjustment on the new credit spread. We can't do the 730/720 bull put spread because you may already have our other bull put spread using the 730 put. If you don't have the other 740/730 bull put spread then you can sell the 730/720 bull put spread.
Close out the August 770/760 RUT spread for about $3.30 ($6,600)
Sell 30 contracts of a lower August bull put spread - 720/10 for a credit of about $1.10 ($3,300)
Sell 30 contracts of an August bear call spread - perhaps the 840/850 for a credit of about 1.20 ($3,600). You may want to do the 850/860 for a credit of about $.75 ($2,250)
Remember, we also have an initial credit that we took in of $900.
I'll go into this in more detail in tonight's column.