The best first half performance was achieved since 2013 as June comes to a close, and investors take a break for the Holiday weekend.
The broad market closed slightly higher yesterday after a volatile week; logging in the largest gains in several years for the first six months. The benchmark index SPX closed +3.71 points. With an early close on Monday with very low volume, it is a wait and see how the market will behave when it re-opens Wednesday.
Below is the open position status:
RUT Monthly Iron Butterfly for July
This position was opened on Monday, June 19; details below:
- SOLD RUT July 1410 Call, 23.30 credit.
- BOUGHT RUT July 1460 Call, 4.20 debit.
- SOLD RUT July 1410 Put, 18.85 credit.
- BOUGHT RUT July 1360 Put, 6.90 debit.
Order was filled as an "Iron Condor" for $31.05 net credit (all four legs).
Additional Order to cut Deltas on upside:
BOUGHT RUT July 1480 Call
Order for extra long call was filled for $1.70.
Margin/Risk is calculated by the width of the wings ($5,000), less credit received, plus the cost of the extra long call.
Margin for this trade at entry: $2,065.
Target Gain: 5% of the gross margin ($250/contract)
Max loss: 10% of the gross margin ($500/contract)
On June 28, RUT reached the upside adjustment trigger and was adjusted as follows:
BOUGHT RUT July 1410 Call, 28.32 debit.
SOLD RUT July 1460 Call, 4.90 credit.
SOLD RUT July 1430 Call, 16.00 credit.
BOUGHT RUT July 1480 Call, 1.90 debit.
Net debit (all four legs): $9.32
The position summary after the adjustment is as follows:
SHORT July 1430 Call
LONG July 1480 Call
SHORT July 1410 Put
LONG July 1360 Put
LONG July 1480 Call bought at trade entry to cut position delta.
The position is now a 20 point wide Iron Condor.
The next adjustment trigger point will be either short strike, depending on overall position status and market conditions.
Below is the risk graph as of the close Friday:
RUT July Iron Condor:
Think or Swim is currently showing the position +$188, and flat delta so positioned nicely for next week. RUT closed Friday at 1415.36, down just slightly by -.84 points or .06%.
Below is the RUT 6 month chart showing the short strikes:
RUT 6 month chart:
The volatility index VIX spiked to 15 on Thursday afternoon, but settled down to close at 11.18 Friday, down .26 or -2.27%.
VIX 6 month chart:
Next week's economic news, is summarized below:
9:45 pm China Manufacturing PMI
10:00 am ISM Manufacturing Index
1:00 pm Markets close
10:00 am Factory Orders
2:00 pm FOMC Minutes
8:15 am ADP Employment Report
8:30 am International Trade
8:30 am Jobless Claims
10:30 am EIA Petroleum Status Report
8:30 am Monthly Employment Report
For those unfamiliar with the strategies we trade, the trade management guidelines for all the Couch Potato Trader plays 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,