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Category: Dr. Duke's Blog
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After a weak start, the market finished strong today, with the RUT index closing at $502. Recent support levels are in the range of $470-$475 and resistance is at $510-$513. As long as the RUT stays within this range, we do not need to take action on our iron butterfly trade. Currently we stand at a gain of about $3070 or 13% on our $23,375 of capital at risk. Our current time decay curves are crossing breakeven at about $455 and about $519. If The RUT continues up strongly on Monday and breaks the $510-$512 resistance, we will close the top side of the butterfly. However, it looks likely that GM will declare bankruptcy Monday or Tuesday and that will likely cause a pause in the market's gains.