Comments on: Some Additional Analysis on the RUT Trade http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade Options, Economics, Futures, Politics and a bit of the Barr Family scattered in between Sat, 29 Aug 2009 07:29:49 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: name http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade/comment-page-1#comment-623 name Sun, 27 Jul 2008 19:28:35 +0000 http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade#comment-623 you can better, you can better,

]]> By: Ryan http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade/comment-page-1#comment-37 Ryan Tue, 15 Jan 2008 03:33:46 +0000 http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade#comment-37 Good luck man! I'd really look at other options if they are out there. I don't know what your portfolio looks like over all, but if you can roll out into some IWM verticals that may workout better. Because the strikes are so close, you might be able to do a larger number of contracts at a smaller credit to cover the trade. Anyhow, good luck! -rb Good luck man! I’d really look at other options if they are out there. I don’t know what your portfolio looks like over all, but if you can roll out into some IWM verticals that may workout better. Because the strikes are so close, you might be able to do a larger number of contracts at a smaller credit to cover the trade. Anyhow, good luck!

-rb

]]> By: Tom Childs http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade/comment-page-1#comment-36 Tom Childs Tue, 15 Jan 2008 03:08:49 +0000 http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade#comment-36 Ryan, Thanks for taking the time to give me your input. I think I am going to have to kick the can and roll out to Feb 730/720, and like you said, wait for a bounce and possibly buy out at that point. Thanks Again, Tom Ryan,

Thanks for taking the time to give me your input. I think I am going to have to kick the can and roll out to Feb 730/720, and like you said, wait for a bounce and possibly buy out at that point.

Thanks Again,

Tom

]]> By: Ryan http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade/comment-page-1#comment-35 Ryan Mon, 14 Jan 2008 15:08:08 +0000 http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade#comment-35 That doesn't seem like a fun position to be in at all. 720/710 is a little ugly right now. So as it stands right now your out $1,000 less your credit per contract. Time is really working against you right now. If you feel comfortable making a call on the market, you could try to hold off and hope the market goes up this week, you would also be taking expiration risk. You'd really need the RUT to head upwards of 712 buy back on Thursday for more than you could today. If the RUT slips, you're going to feel the pain - potentially a lot of pain. I don't know that I'd vertically roll out to 730/720. That means that you are going to go short in the money puts and hope that the market rises. If it doesn't go up, you're really going to be just giving away commissions. Personally, I'd view the 730/720 put spread as a directional position and I don't know that I'd want to go directionally long right now. I'm sure that the market will bounce up and down, if you wanted to go short that spread, then close it for a smallish debit when the market bounces that may be a good idea. Another one that I'd look at right now is to put on short PUT spread on the IWM or SPY. These are the futures for the RUT and SPX respectively. With the VIX up were it is right now, you can put on some really nice spreads for really solid credits in these guys. I hope that helps, good luck! -rb That doesn’t seem like a fun position to be in at all. 720/710 is a little ugly right now.

So as it stands right now your out $1,000 less your credit per contract. Time is really working against you right now.

If you feel comfortable making a call on the market, you could try to hold off and hope the market goes up this week, you would also be taking expiration risk. You’d really need the RUT to head upwards of 712 buy back on Thursday for more than you could today. If the RUT slips, you’re going to feel the pain – potentially a lot of pain.

I don’t know that I’d vertically roll out to 730/720. That means that you are going to go short in the money puts and hope that the market rises. If it doesn’t go up, you’re really going to be just giving away commissions.

Personally, I’d view the 730/720 put spread as a directional position and I don’t know that I’d want to go directionally long right now. I’m sure that the market will bounce up and down, if you wanted to go short that spread, then close it for a smallish debit when the market bounces that may be a good idea.

Another one that I’d look at right now is to put on short PUT spread on the IWM or SPY. These are the futures for the RUT and SPX respectively. With the VIX up were it is right now, you can put on some really nice spreads for really solid credits in these guys.

I hope that helps, good luck!

-rb

]]> By: Tom Childs http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade/comment-page-1#comment-34 Tom Childs Sun, 13 Jan 2008 18:10:06 +0000 http://www.ryanbarr.com/trading/some-additional-analysis-on-the-rut-trade#comment-34 Hello Ryan, I enjoyed reading several of your blog posts. I am also a TOS user and actively trade RUT iron condors. I have only been doing it for about six months now. I am in a bit of a quandry right now that I thought you might be able to give me your take on. Before I give you the details, who ever would have predicted a 9% correction to bring in the new year. Here it is - I am short the 720/710 RUT Put spread. I sold an entire iron condor on 12/21 for $1.60 but have since closed out the worthless call side, so I am now left with this disastrous put spread. With only 4 trading days left, the actions I can take, or not take, are very expensive at this point. The way I see it, if I want to bail out now, the best thing to do is to do a vertical roll into Feb, and raise the spread to 730/720 to minimize my debit to only $.65. This obviously is in hopes of a rebound out of the money by then. I would greatly appreciate your thoughts. Thank You - Tom Hello Ryan,

I enjoyed reading several of your blog posts. I am also a TOS user and actively trade
RUT iron condors. I have only been doing it for about six months now. I am in a bit of
a quandry right now that I thought you might be able to give me your take on. Before
I give you the details, who ever would have predicted a 9% correction to bring in the
new year. Here it is – I am short the 720/710 RUT Put spread. I sold an entire iron
condor on 12/21 for $1.60 but have since closed out the worthless call side, so I am now left
with this disastrous put spread. With only 4 trading days left, the actions I can take, or not take, are very expensive at this point. The way
I see it, if I want to bail out now, the best thing to do is to do a vertical roll into Feb,
and raise the spread to 730/720 to minimize my debit to only $.65. This obviously is
in hopes of a rebound out of the money by then. I would greatly appreciate your
thoughts. Thank You – Tom

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