Still holding tight on the RUT

As of this morning, I’m still holding tight on the current RUT(505.03 +0.00) play. As it sits right now, my order is out there to close this position for a credit of $0.15. I don’t have any plans to cancel that order.

So far this morning the market is cooperating and moving up. We will see if that continued. As the days tick away, time value disappears and the short options lose there value. That helps my position out nicely as I’m getting closer and closer to a fill each day.

Assuming the market remains strong today, I fully realize that I’m very likely giving away $0.15 per contract. However, I’m still not convinced that this market is going to hold through the week. What I do not want to see is a major drop on Friday that exposes me to extreme expiration risk.

Personally, that risk is larger than $0.15 per contract. I’d like to keep my cash and move onto next week.

Anyhow, good luck. I’ll keep posting my thoughts as the week develops. Trade smart!