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Russell 2000

Russell 2000 (RUT) : Follow up on Watching RUT

This is a follow up post on my previous RUT reading.

Following on my RUT reading, I decided to established a Vertical March Call Spread at 630/640

The rationale is that I have already ride on some profits from my Vertical March Put Spread at 570/580

If RUT does goes higher, I will suffer some losses on my CALL Spread. And I will remove it once it reaches a certain level.

But, if RUT fails to goes higher or reverse, I will be able to close off my PUT Spread and let the CALL rides the way down.

Writing this post helps to crystalize my thoughts.

My next step is to :

– Watch how RUT reacts to the rate hike.

– Establish stop levels for my MARCH CALL Spread.