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BookingAlpha Option Trading Advisory

Monday, January 23, 2012

February RUT Bear Put Spread - Trade Closed

Demo-Trading:

BUY TO CLOSE 5 February 830 PUT @44.50
SELL TO CLOSE 5 February 835 PUT @49.30
Credit Received: 4.80

The initial trade had been entered for a debit of 4.20. Closing the spread for 4.80, gives us a profit of 0.60. 5 contracts per leg = 5 * 0.60 * 100 = $300. See the order execution below.

(Click on image to enlarge)

I'm not really sure a trade like this could have been possible in a real money environment without having problems with execution due to the limited liquidity. Anyways, I'm closing it as the markets are just unstoppable on their way up. And in days with absence of news it has tended to keep moving upwards.

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