RUT trades during market rally (March 4, 2014)

These were my trades yesterday March 4.

First I sold a RUT 1240/1250 Credit Call Spread, probably a little early as RUT kept going up all day:
Sell 2 RUT March 1240 Call @3.00
Buy 2 RUT March 1250 Call @1.60

Credit 1.40 ($280)
Max risk: 8.60 ($1720)
Max return on risk: 16.28%
Days to expiration: 17

As the market kept rallying I had to adjust the existing RUT Iron Condor that I had in April.
This was a 1020/1030/1245/1255 initially entered for 1.40 credit. I closed it for 3.50 debit for a 3.50 - 1.40 = 2.10 loss (or $420 for 2 contracts per leg). I opened a new Iron Condor with April options in RUT right away using 1080/1090/1280/1290 as the new strikes:

Buy 3 RUT April 1080 Put @4.50
Sell 3 RUT April 1090 Put @5.10
Sell 3 RUT April 1280 Call @3.20
Buy 3 RUT April 1290 Call @2.20
Credit 1.60 ($480)
Max risk: 8.40 ($2520)
Max return on risk: 19.05%
Days to expiration: 44

A chart of RUT at market close yesterday:
(Click on image to enlarge)

To sum up, these are the current positions in the portfolio:
March SPY 159/161/191/193 Iron Condor. $319 credit.
March RUT 940/950/1240/1250 Iron Condor. $460 credit.
April RUT 1080/1090/1280/1290 Iron Condor. $480 credit.

There is a good chance to have a solid March expiration cycle. April positions started with the wrong foot but there's time to recover.

Check out 2014 Track Record

Related Articles
Weekend Portfolio Analysis (March 8, 2014)
Weekend Portfolio Analysis (March 15, 2014)
Weekend Portfolio Analysis (March 21, 2014)
Weekend Portfolio Analysis (March 30, 2014)
Weekend Portfolio Analysis (April 5, 2014)
Adjusted 1080/1090/1280/1290 RUT Iron Condor down to 1055/1060
Weekend Portfolio Analysis (April 11, 2014) 

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