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We have about one hour of trading left on this Friday before the long weekend and the RUT index is at $483. All is well for our butterfly; we could close it this afternoon for a 6-7% gain, but that would be premature. The time decay over the long weekend will work in our favor. On Monday, we may have sufficient gains to either take off a portion of the position or at least enter some contingency orders set to trigger and close the trade with any big moves in the market. We don't want to let this gain get away from us! Greed is just as dangerous to our trading as fear.

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RUT closed at $489 today and our butterfly position is $665 in the green. The RUT chart shows pretty strong support around $475 and it has been difficult for RUT to hold anything above about $510, so we appear to be in good shape with this butterfly. Plus, we have a long weekend coming up and I would expect trading volume to start to slow on Friday... all good news for a delta neutral position. Let the time decay work for us.

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It has been a long time coming, but our web site is nearly finished.

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Today I established an iron butterfly on the RUT index; 5 contracts of the 400-470 put spreads at $11.10 and 5 contracts of the 510-580 call spreads at $12.15 for a total credit of $11,625. Breakevens are at $447 and $533.