RUT Weekly Calendar Trade #6
Posted by Mark on May 26, 2015 at 07:30 | Last modified: June 5, 2015 08:54I opened my sixth weekly calendar trade Tuesday, May 19, at the 1255 strike. The market was right around 1255 upon fill. I placed the order at the mid and caved $0.10 over 10 minutes to get filled.
Here was the price action during this pre-Memorial Day week:
With the market trading sideways, this position was like manna from heaven. I closed the trade Friday morning. The market only gained two points in three days and the trade profited 8.5%.
I believe the long holiday weekend gave this trade an advantage. With the market to be closed the following Monday, I anticipated Friday to see nearly four days of time decay rather than three. I consider this difference to be significant since the trade is only placed with 10 DTE.
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