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BookingAlpha Option Trading Advisory

Friday, February 15, 2019

April RUT Elephant

Trade Details:

4 Apr RUT 1400/1390 Credit Put spread @0.65 credit each
3 Apr RUT 1675/1685 Credit Call spread @0.95 credit each

3 Apr IWM 165 Long Calls @0.64 debit each

Net Credit: $353
Max Risk: $3,647

Risk Profile

RUT Chart for future reference:

Trade Update (March 6, 2019)

Closed the Call side for a profit:
3 Apr RUT 1675/1685 Credit Call spread @0.18 debit
Original credit was 0.95 per. Net gain 0.77 = +$231

3 Feb IWM 165 Long Calls @0.14 credit
Original debit invested was 0.64. Net loss 0.50 per = -$150

Net gain +$81

Put side remains in play.

Trade Update (April 1, 2019)

Closed the Put side for a profit:

4 Apr RUT 1400/1390 Credit Put spread @0.15 debit each
Original credit received was 0.65.
Net gain = 0.50 per contract.
Total: $200

Combining this +200 gain with the +81 obtained earlier from the Call side, we have a total profit of +$281 
On a max risk of $3,647, this is a +7.7% return on Risk.

If you are interested in trading Index options using neutral approaches with a responsible risk management approach, consider LTOptions, where these techniques and many others are discussed to the last detail.

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