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Friday, September 21, 2018

November RUT Elephant

Trade Details:

SELL 20 RUT November 1580/1570 Credit Put spreads @0.60 Credit
SELL   8 RUT November 1810/1820 Credit Call spreads @0.90 Credit

Long hedges:
BUY  16 IWM November 182 Calls @0.22
BUY   1  IWM November 161 Puts @0.98

Total Net Credit: $1,470
Days to Expiration: 56


Risk profile:
 

RUT Chart for future reference:



Trade Update (October 5, 2018)

Adjusted Put side:
CLOSED 20 RUT November 1580/1570 Credit Put spreads @2.20 Debit
Original credit received was 0.60. Loss is 1.60 per spread = -$3200

CLOSED   1  IWM November 161 Puts @3.25
Original Debit paid was 0.98. Gain = $227
Net loss in the whole thing = -3200 + 111 =  -$2973

Deployed new Credit Put spread:
SELL 20 RUT November 1460/1470 Credit Put spreads @0.60 Credit


The new position is now:
1460/1470/1810/1820 ($1920 credit)
plus
Long 16 IWM November 182 Calls @0.22 debit



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