RUT Weekly Calendar Trade #15

On July 21, I bought a JulWk5 1255 calendar for $7.37.

With the market trading lower near the expiration breakeven, I rolled half to 1230 on July 24 for a $0.50 debit. This cut NPD from 18 to 3-4.

Less than four hours later, the market was at 1227 so I rolled the other 1255 calendar down to 1235. This was a mistake: I should have rolled to 1230 but it really did not make a difference. I now had a 1235/1230 double calendar to be closed either at 15% loss or if an expiration breakeven was hit.

Shortly after the open on expiration Monday, the market traded under 1213. I closed the double calendar for a max loss of 19.4%.

They say in trading, one has to be able to accept losses. This is now three in a row.

From a few who are now supposedly in their second year doing this trade, I hear it’s not out of the ordinary to have three consecutive losses once or twice per year. I’m trying to give this trade a fair shot so while now bordering on apathetic (not good) with regard to my outlook for this trade, I will keep plugging away.