Diary | 2/14/2020 | RUT ButterflyJustification: Capitalizing on low IV environment with this non-directional strategy.
- Directional Play: No.
- Technical: Above 20 and 50 MA.
- Fundamental: Earnings continue to improve; Fed really supportive; jobs data positive; ISM manufacturing higher; market participants equally split between bullish and bearish ; virus data (if correct) shows the growth in virus cases slowing; trade going in a positive direction; world economy growth has persisted; and so on.
If/Then:
- Take profit? 20-50% of credit received.
- Where will you hedge? $1690
Strategy Details:
- Short and Long leg: $1680, $1700
- Delta: 13.33
- Duration: February 21
Disclaimer: This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve (myself especially), so if you see something wrong, speak up.