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Tuesday, January 8, 2019

February RUT Elephant

Trade Details:

4 Feb RUT 1240/1250 Credit Put spread @0.60 credit each
3 Feb RUT 1530/1540 Credit Call spread @0.95 credit each

6 Feb IWM 154 Long Calls @0.28 debit each

Net Credit: $357
Max Risk: $3,643

Profit/Risk Profile



RUT Chart for future reference:



Trade Update (January 18, 2019)

Closed the Call side at a loss, left the Put side open, whose credit is greater than this Call side loss.


- Closed 3 Feb RUT 1530/1540 Credit Call spread @2.10 debit each
Original credit received was 0.95. This is a 1.15 loss per spread (x3 = -$345)

- Closed 6 Feb IWM 154 Long Calls @0.50 credit each
 Original debit invested was 0.28 per contract, this is a 0.22 gain (x6 = +$132)

Combining both things, the net loss on the Call side is $213


The Put side remains in play, very safe at this point, and with a credit of $240 on that side it should overcome this loss.




Trade Update (February 15, 2019)

Put side expires for max profit:
4 Feb RUT 1240/1250 Credit Put spread

Net profit: 0.60 per ($240 for 4 spreads)

Combined with the earlier loss on the Call side, the net result is a small winning trade 240 - 213 - $27
On an initial Max risk of $3,643, this is a +0.7% Return on Risk.


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