There comes a time occasionally when it's best to exit a position for breakeven rather than keeping the risk overnight and through a potentially market-moving event.

I mentioned in my June 14 post that with the FOMC meeting announcement and Chairman Bernanke's press conference tomorrow, it was recommended to close this week's open positions beforehand even if at a reduced gain.

This morning, with RUT at 991.61, we closed the open June Call Credit Spread for breakeven. While the short strike (1010 call) was still over 18 points away, I felt it was good risk management to close the position before it moved against us. More adventuresome traders may choose to keep the position open overnight, but I was more comfortable taking the risk off the table, and plan for a new trade entry after the FOMC announcement settles. We now have the position of "cash" to take us through the announcement.

A new position will be entered either late Wednesday or Thursday for the June 4 cycle, which expires June 28.

As always, stay keen on your risk management and trade carefully,

Dot Hazlin