I have one short position in RUT -jan expiration. 400 put Do you think this position is reasonably safe? When will I know the settlement price .
The settlement price will be published some time tomorrow afternoon. It takes a while to calculate it with 2000 stocks. I had a short 410/400 put spread on and closed it out earlier in the week, no point in waiting for those extra 10-20 cents.
1) Yes it's reasonably safe. But why in the world are you holding it? What do you have to gain? 2) RLS is the settlement symbol. Agree with MTE - expect to see it about closing time. Mark
Thanks MTE Are you saying 10-20 US dollars or 10-20 cents? I had received only $65 for the position. This was just a try in RUT. Is there any way you select a position in some way that you donot have to worry and have sleepless nights and wait till expiration . You donot forget the trade but monitor at regular times but donot require to do any adjustments. Thanks
I meant 10-20 cents as in the quoted price so that's 10-20 dollars per contract. I didn't mean to say that you should get out, I just mentioned what I did with my 410/400 short put spread. I sleep great at night and I generally don't do adjustment, well except closing out positions that aren't worth much anymore and thus either provide no hedge for another position or have a poor risk/reward ratio going forward (e.g. I closed out my Jan positions a week before expiry sacrificing one-tenth of the maximum potential profit as I deemed it not to be worth the risk of the index crashing and leaving me with a max loss or any loss for that matter), besides, the Feb premiums looked quite attractive at the time.
Thanks MTE As a matter of interest what other products you trade? Do you trade futures as well. Are you with IB? Eventually I want to day trade futures. Options sometimes gets me too much worries.