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Thursday, August 10, 2017

October 2017 RUT Credit Put Spread

Trade Details:

SELL 20 October RUT 1200 Put @7.20
BUY 20 October RUT 1190 Put @6.60

Net Credit: 0.60 ($1,200)
Days to Expiration: 70


A little far from expiration, all due to the fact that two positions already exist in the September cycle (an Iron Condor and an Elephant) both with downside exposure. So, I went with the next upcoming cycle. Given how far it is from expiration, I don't plan to hold this one all the way to the end.

Nice market sell off today, leading to the first oversold condition of the year. Crazy that we had to wait until August.

A RUT chart at market close for future reference:
(Click on image to enlarge)

Trade Update - August 28, 2017

Closed 20 October RUT 1200/1190 Credit Put spread @0.35 debit

As planned over the weekend, I'm closing this one to reduce downside exposure in the portfolio as four Credit Put spreads were in play simultaneously.

Since the original credit received was 0.60, the net gain is 0.25. Total gain in dollar terms is +$500 (0.25 * 100 * 20 spreads).

The position was held for only 18 days. We are still 52 days away from expiration so, there is a chance that something like this will be re-deployed if the market reaches another oversold condition.

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