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BookingAlpha Option Trading Advisory

Wednesday, March 7, 2012

March IWM Bull Put Spread closed

Demo-Trading:

BUY TO CLOSE 14 March IWM 76 PUT @0.33
SELL TO CLOSE 14 March IWM 74 PUT @0.16
Debit: 0.17

The initial trade had been entered for a CREDIT OF 0.25. Closing the spread for 0.17 debit, results in a profit of 0.08. In 14 contracts per leg = 14 * 0.08 * 100 = $112. See order execution below.

(Click on image to enlarge)

With the markets selling hard 2% yesterday, I'm taking advantage of this breath today and closing this IWM 76/74 spread. IWM lower than 76 by Friday next week is easily possible, which would break my heart.

Two trades remain open in the March portfolio: an IWM 88/90 Bear Call spread and an SPY 141/143 Bear Call spread. They both look really good 9 days away from expiration.

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