As the market has rebounded from the December lows, today we found a short call spread going out to February 1st that qualified under our entry rules. For some of you it might be a new concept selling call spreads instead of put spreads.
Following yesterday’s post regarding successful expiration, another trade presented itself as the market experienced one of the worst days of the year.
After some real volatile trading sessions, today’s Halloween session marked the first time in the last 13 trading sessions that we finished up two days in a row.
This morning’s higher open afforded us the chance to do something we haven’t done in a while; roll the position down (strike prices) and out (date of expiration) for a net credit of 1.2%.
With just two trading days to go until expiration, the Russell 2000 (RUT) has found itself within 3% of the HiPOS 1430 short strike.