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Thursday, September 6, 2018

October RUT Elephant

Trade Details:

SELL 20 RUT October 1590/1600 Credit Put spreads @0.60 Credit
SELL   8 RUT October 1810/1820 Credit Call spreads @0.90 Credit

Long hedges:
BUY  18 IWM October 182 Calls @0.20
BUY   1  IWM October 161 Puts @0.97

Total Net Credit: $1,463
Days to Expiration: 43


Risk profile:
 

RUT Chart for future reference:



Trade Update (October 5, 2018)

Adjusted Put side:
CLOSED 20 RUT October 1590/1600 Credit Put spreads @2.20 Debit
Original credit received was 0.60. Loss is 1.60 per spread = -$3200

CLOSED   1  IWM October 161 Puts @2.09
Original Debit paid was 0.97. Gain = $112
Net loss in the whole thing = -3200 + 112 =  -$3088

Deployed new Credit Put spread:
SELL 20 RUT October 1540/1530 Credit Put spreads @0.60 Credit


The new position is now:
1530/1540/1810/1820 ($1920 credit)
plus
Long 18 IWM October 182 Calls @0.20




Trade Update (October 11, 2018)

Adjusted Put side:
CLOSED 20 RUT October 1540/1530 Credit Put spreads @2.20 Debit
Original credit received was 0.60. Loss is 1.60 per spread = -$3200


Deployed new Credit Put spread in December cycle:
SELL 20 RUT December 1350/1340 Credit Put spreads @0.70 Credit
Total credit $1400




Trade Update (October 19, 2018)

Call side expires:
8 RUT October 1810/1820 Credit Call spreads @0.90   +$720
18 IWM October 182 Long Calls @0.20    -$360
Net-net the Call side results in a $360 profit

The only thing that is now left is the 20 RUT December 1350/1340 Credit Put spreads @0.70 Credit ($1400)


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