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.