We take a look at the RUT price chart and see how the market has moved up 17% over the last month. Does it really make sense to put our spreads right at the money? Adjustments can help, but they can never remove the embedded risk in these trades. We also take a look at the 360 Tool by Think or Swim and see how this can help you see if you are getting a fair price on your trades. It’s a great idea to look at the skews before making trades with real money. We do some back-testing also and see how an Iron Condor over the last month would be down about 20% if no adjustments were made. If adjustments were made, there is no guarantee it would be any better since the market has been whipsawing back and forth. Finally we see that our student paper account is over $51,000 of profit this year. This video was made on 10/07/10
