Category: Dr. Duke's Blog
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The RUT (Russell 2000 Index) closed down at $511.83 today. Our RUT Jun iron condor at 410/420 and 560/570 is in a very good position. Normally, we would be inclined to have closed this trade either last Friday or today. However, I allow the spreads to expire worthless and save the last few hundred dollars of time value and commissions if, and only if, the spreads are > two standard deviations away from the index. Today, the calls stand at over 3 and the puts at over 6 standard deviations out of the money (OTM). We will monitor them carefully until the last hour of trading on Thursday. As long as both spreads are > two standard deviations away, we will allow them to remain open into expiration.

Our July RUT iron condor at 460/470 and 560/570 stands at slightly positive to breakeven at the close today, so we will continue to hold this position.