RUT Weekly Calendar Trade #10

I opened my tenth weekly calendar trade Tuesday, June 16, at the 1260 strike. The market was 1261.61 at the time of fill. I placed the order at the mid and caved $0.10 over 16 minutes to get filled $0.15 off the then mark.

Two days later with the market just over 1280, I rolled one of the 1260 put calendars to a 1285 call calendar for a $0.20 debit. Later that day with the market at 1285, I rolled the other 1260 calendar to 1285 for a $0.65 debit. This would be my last adjustment for the position, which was now down 12%.

In two days, I had basically closed the initial trade and reopened another 25 points higher. For this trade to turn out well, the market pretty much had to stay calm for days.

On Tuesday, June 23, the position was down 3% and just a couple points away from the upper expiration breakeven. To have a chance at a profitable outcome, I figured I would have to hold into the last two days. As I have done previously in this case, I closed one of the calendars to decrease risk in case Wednesday were to welcome me with a big gap opening.

The market traded lower on Wednesday and my contingent order to close was triggered at 1:32 PM with the market at 1285. This position made about 10% in nine days.