October RUT Elephant

Trade Details:

4 Oct RUT 1350/1340 Credit Put spread @0.65 credit each
2 Oct RUT 1610/1620 Credit Call spread @0.90 credit each

4 Oct IWM 162 Long Calls @0.20 debit each

Net Credit: $360
Max Risk: $3,640

Risk Profile

RUT Chart for future reference:

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Trade Update - September 12, 2019

One week after the entry, RUT has rallied 4%+

I'm closing the whole Call side and letting the Put side run:

2 Oct RUT 1610/1620 Credit Call spread @3.20 debit each
Original Credit was 0.90 per.
Loss 2.30 per, which means -$460 in dollar terms

4 Oct IWM 162 Long Calls @0.95 credit each
Original debit was 0.20 each
Gain 0.75 per, which means +$300 in dollar terms

Combining both -460 +300 = $160 loss today
But, no more Call side exposure and a Put side with $260 credit, now looking safer and if it wins it is more than enough to compensate for today's loss on the Call side.

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Trade Update - September 20, 2019

Closed the Put side:
4 Oct RUT 1350/1340 Credit Put spread @0.65 credit each
Original Credit was 0.65 per
Net gain is 0.55 per. $220 in dollar terms for 4 spreads.

This profit combined with the loss suffered earlier on the Call side results in a small profit +220 - 160 = +$60

On an Max risk of $3,640 this represents a +1.6% return on Risk.

The position is now completely closed.

Check out 2019 Track Record

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