The bulls have taken RUT out of entry range for the July Iron Butterfly.

As outlined in the guidelines for the monthly Iron Butterfly, it is not recommended to enter the position if RUT has moved a one day, standard deviation in either direction. According to my broker's calculation, that is currently a 10 point move. As of this writing, RUT is up over 17 points, so I will not be entering the monthly position today.

I never like to enter monthly positions on expiration Friday, which is tomorrow. There can often be false price movement and inaccurate option pricing on expiration day. Monday will be 26 days to expiration, most likely the last day I would consider entering a July monthly position. Depending on RUT and overall market conditions, I may dip my toes into the July Iron Butterfly then and just be willing to accept less credit.

For those unfamiliar with the strategy, the trade management guidelines were updated on October 22, 2014, and can be found here: Link to Articles

Trade updates will be posted as appropriate.

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

Dot Hazlin