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BookingAlpha Option Trading Advisory

Wednesday, November 15, 2017

December29 RUT Bull Put spread

Trade details:

SELL 5 Dec29 RUT 1330/1320 Credit Put spread

Net Credit: 0.60 per spread ($300 total)
Days to expiration: 45

Playing it very small (one fourth the typical size) as there is decent downside exposure already in the portfolio. This small size will allow me to delay an adjustment until RUT 1,335 which was 8.4% below RUT price (1,457) at trade entry. I think those are good odds down there.

RUT Chart for future reference and self-stuy
(Click on image to enlarge)

Trade Update - November 21, 2017

Added a Call side to complete an Iron Condor
SELL 5 DEC29 RUT 1590/1600 Credit Call spreads (@0.90 credit each)
Total credit received: $450

There is now a small, balanced 1320/1330/1590/1600 Iron Condor:

And an updated RUT Chart:

Trade Update - November 21, 2017

Closed the Put side for gains:
BUY TO CLOSE 5 DEC29 RUT 1330/1320 Credit Put spreads (@0.15 debit each)
The original credit received was 0.60 per spread.
This is a net 0.45 winner, or $45 * 5 = $225 in dollar terms.

A new Credit Put spread was opened right after:
SELL 5 DEC29 RUT 1420/1410 Credit Put spreads
Net Credit: 0.67 per spread ($335 total)

The current position is now a DEC29 RUT 1410/1420/1590/1600 Iron Condor:
Total credit in this position is $785.
Additionally, a small $225 gain has been locked in.

Trade Update - December 29, 2017

DEC29 RUT 1410/1420/1590/1600 Iron Condor expires for max gains
Net Gain: 0.90 (per Call spread x 5 = $450), plus 0.67 (per Put spread x 5 = $335). Total = $785

Earlier on we had made a $225 gain on the original 1330/1320 Put spread before rolling it up. The total gain in the RUT Dec29 position is therefore $1,010. This represents a 20% gain on the 5K of capital invested.

This is the last position of 2017, ending the year at +20.27% growth for the whole portfolio.

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