Road Trip Using RUT ???

Discussion in 'General Discussion' started by Bill Lasko, May 11, 2017.

  1. Bill Lasko

    Bill Lasko New Member

    I'm new to Capital Discussions and to the Road Trip Trade service - but I can already tell there's enormous value in both.

    I've started paper trading the Road Trip Trade and doing some small real-life trades - why am I not seeing and trades performed in the RUT ?? Is there a reason for this - e.g., SPX and ES perform better ?

    Any words of advise would be greatly appreciated. My first few tinkers with the RUT look very good ...

  2. DGH

    DGH Administrator

    Hi Bill. Welcome. We used to trade RUT as one of our primary vehicles, but the premiums were low and more adjustments were required than for SPX or ES. Therefore, we sidelined it, at least for now. Our ES service is primarily for those traders who want to make very few adjustments, so we do not layer those trades. My only adjustment is the RH. Commissions are high, but their SPAN margin makes ES trades attractive on a yield-adjusted basis. I layer my SPX trades, so they usually make more dollars, but not necessarily more on a yield-adjusted basis. RUT performed worst.
  3. ACS

    ACS Well-Known Member

    Keep in mind markets go through cycles where option pricing and price action vary. In the future the RUT might perform better than the SPX so it pays to monitor the RUT from time to time even if you are primarily trading the SPX/ES and vice versa.
    Shin likes this.
  4. jpresser

    jpresser Member

    From trading both things I personally found that the RUT on most trades seemed to have larger moves. For example, the SPX might move 0.2 percent, while the RUT would move 0.5 to 1 percent. This is back a few years ago.

    Sent from my iPad using Tapatalk

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