A question was ask in a E mail yesterday about the delta neutral position in Bonds if the market trades back into the trading range would I close out the position.
My answer, If it trades back inside the range and closes inside the range say around the 119 price area mid range then I would consider closing the trade. Main reason is the market did not follow through as expected. A false break out would probably be the answer. When trading any break outs of a trading range this can and does happen.
My gut feeling is it will break soon and could go in either direction so a stand a side and be patent. I will up date if closing the position if need be. Most of the time a chart long pattern like this one the brake out is most likely to work. However Not this time.
The option premium will gain back some of it's loss but a net loss will probably be the case.
Happy trading.
USCoralSea