Things began this week too bullish for my comfort level on the SPX July 1 Call Credit Spread; the position was exited for breakeven this morning.
This week is a shortened trading week with the Fourth of July holiday. I've mentioned in previous articles that sometimes I will exit a position at a reduced target, or even breakeven, rather than risk the market moving against my position and the possibility of it turning into a losing trade. This morning, it appeared to me that this week had a bullish tone, so I decided to exit the open July 1 Call Credit Spread for breakeven at approximately 11:00 am. Trading weekly options gives us the flexibility for an early exit, as a new trade entry is only a few days away.
Some of you who entered this position may be more aggressive than I am and may choose keep the position open. However, I still recommend closing the spread regardless of gain by the early close on Wednesday.
A new position will be entered Friday on SPX and/or RUT, if market conditions are favorable.
In the meantime, enjoy your Holiday!
Stay keen on your risk management and trade carefully,