[Information Only on Russell Condor]
Dear Member:
As I write, the Russell 2000 Index (RUT) remains between the two short legs of my condor trade (short the 770 puts and short the 860 calls)near 774. That is where I want it to stay -- between 770 and 860. RUT options are European style so there can be no early exercise. I need to be aware that Thursday, not Friday, is the last day I can trade these Nov expiration index options so I am keeping a close watch. As is generally the case, the time value goes out faster and faster as expiration approaches and that is exactly what I want to happen here. I will close the short put leg on Thursday if the index price is close to the strike (770) on that short put leg.
DISCLOSURE: I still hold the iron condor on RUT.
Sincerely,
Bill Kraft
|
