Dr. Duke's Blog
Do you know any trading coaches who discuss the market candidly without any marketing hype? Dr. Duke publishes a weekly newsletter and shares the track records of his trading services. If you have questions about any of his services, Ask Dr. Duke.
Wednesday, May 27
- Details
- Written by Dr. Duke
The RUT index closed at $490 today - right at the midpoint of our iron butterfly with short strikes at $470 and $510. So our trade is in near perfect shape at this point. However, now that our trade is profitable, we need to be cautious and not allow our profits to get away from us. Today's time decay curve would allow the RUT to range as high as about $505 and down to about $475 before we would need to close our trade to preserve the profits. Each day that passes will allow us even more breathing room.
Friday, May 22
- Details
- Written by Dr. Duke
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.
Wednesday May 20
- Details
- Written by Dr. Duke
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.
Monday May 18
- Details
- Written by Dr. Duke
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.
Saturday May 16
- Details
- Written by Dr. Duke
It has been a long time coming, but our web site is nearly finished.
