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BookingAlpha Option Trading Advisory

Friday, October 25, 2019

December RUT Elephant

Trade Details:

4 Dec RUT 1410/1400 Credit Put spread @0.70 credit each
2 Dec RUT 1660/1670 Credit Call spread @1.00 credit each

3 Dec IWM 167 Long Calls @0.28 debit each

Net Credit: $396
Max Risk: $3,604

Risk Profile



RUT Chart for future reference:



Trade Update - November 5, 2019


Closed Call side:
2 Dec RUT 1660/1670 Credit Call spread @2.40 debit each
Original Credit received was 1.00 per
Loss: 1.40 per spread = $280 loss for 2 spreads

3 Dec IWM 167 Long Calls @0.63 credit each
Original debit paid: 0.28 per contract
Gain: 0.35 per contract = $105 for 3 contracts played.

Combining the $280 loss and the $105 gain, it is a net loss of $175 on the Call side of the position

This is a manageable loss, considering that the Put side contains $280 credit, more than enough to eclipse this loss suffered on the Call side. Also, now the Put side (at 1410) is much safer since RUT has gone above 1600.



Trade Update - November 27, 2019


Closed the Put side

4 Dec RUT 1410/1400 Credit Put spread @0.05 debit each

Original Credit received was 0.70 per
Profit: 0.65 per spread = $260 for 4 spreads.

Combining the loss suffered on the Call side, with the gain from the Put side, this was a net $85 gain (-$175 + $260)

$85 gain on a $3,604 max risk represents a +2.4% Return on Risk


Check out 2019 Track Record


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