July 2017 RUT Unbalanced Elephant

Trade Details:

20 RUT 1310/1320 Credit Put spreads 0.60 Credit ($1200)
8 RUT 1500/1510 Credit Call spreads 0.90 Credit ($720)

plus

2/19 IWM 134/151 Unbalanced Long Strangle (.71 debit for the 134 strike Puts, .19 debit for the 151 strike Calls. Total debit paid: $503 )

Net Credit: $1417
Days to Expiration: 42

VIX at 9.50. This is going to be an interesting trade.

Profit picture:(Click on image to enlarge)

A RUT Chart for future reference and self-study:
(Click on image to enlarge)

Trade Update - May 8, 2017
As planned over the weekend, I'm closing the Call side of this Elephant.

Closed 8 June RUT 1470/1480 Credit Call spreads, 0.65 debit
Original credit was 0.92 per. Net gain of 0.27, which is $216 in dollar terms for 8 spreads

Closed 15 June  IWM 148 long Calls. 0.15 credit
Original Debit paid was 0.24. Net loss = 0.09. In dollar terms $144 for 15 contracts.

Net-Net the entire Call side of the Elephant was closed for a small gain of  $72
RUT has declined much more than SPX, and yet the 1470 short Calls were still at 9 deltas. I took some heat initially with this position, so, I'm closing here with the idea of redeploying it on an eventual rebound as June expiration is still far in time.

Put side of the position looking great and remains in play.

Trade Update - July 21, 2017

The entire Elephant expires for max profit of $1,417. No real threats were ever suffered while on this position.

For details about the management of Unbalanced Elephant positions consider an LTOptions.com membership, where there is also material that discusses how to put this type of position in small accounts too.

Check out 2017 Track Record

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