Entered $RUT Jan. 990/995 Credit Put spread for 0.30 credit.
— The Lazy Trader (@lazytrading) December 12, 2013
Sell 4 RUT January 995 Put @3.90
Buy 4 RUT January 990 Put @3.60
Net Credit: 0.30 ($120 for 4 contracts per leg)
Max Risk: 4.70 ($1880 for 4 contracts per leg)
Days to expiration: 35
The uptrend channel in RUT is still in play and current price is just around the lower end of the channel.
This is a chart after market close for future reference.
(Click on image to enlarge)
With this trade, there is an unusual portion of the portfolio at risk, around 70% of the capital. But I'm fine, first because not all the risk is in one side of the market, second because two Put spreads and one Call spread will expire next week and be forever gone. These are all the positions as of right now:
SPX 1675/1680/1850/1855 Iron Condor $425 credit.
SPX 1600/1605 Bull Put Spread $80 credit
SPX 1645/1650/1880/1885 Iron Condor $320 credit
RUT 990/995 Bull Put Spread $120 credit
No position is currently under threat and next week will be a successful expiration week for The Lazy Trader to finalize a very tough year in positive territory.
Weekend Portfolio Analysis (December 21, 2013)
Weekend Portfolio Analysis (December 28, 2013)
Weekend Portfolio Analysis (January 4, 2014)
Weekend Portfolio Analysis (January 11, 2014)
RUT 990/995 Credit Put spread expires worthless for full profit