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BookingAlpha Option Trading Advisory

Monday, July 23, 2018

September RUT Elephant

Trade Details:

SELL 20 RUT September 1530/1540 Credit Put spreads @0.60 Credit
SELL   7 RUT September 1790/1780 Credit Call spreads @1.05 Credit

Long hedges:
BUY  14 IWM September 180 Calls @0.25
BUY   1  IWM September 158 Puts @1.04

Total Net Credit: $1,481
Days to Expiration: 60


Risk profile:
 

RUT Chart for future reference:


Trade Update (August 15, 2018)

Closed CALL Side entirely:
7 RUT September 1790/1780 Credit Call spreads @0.15 Debit
Original credit was 1.05. Net gain is 1.05 - 0.15 = 0.90 per spread ($90). $630 total.
 

14 IWM September 180 Calls @0.06 Credit
Original debit was 0.25. Net loss is 0.19 per contract ($19). $266 total

Combining both the RUT Call spread and the IWM Calls, the net result is a $364 profit.
Put side remains in play.




Trade Update (August 27, 2018)


Deployed a new CALL Side:
SELL 16 RUT September 1795/1800 Credit Call spreads @0.45 Credit
BUY  21 IWM September 180 Calls @0.17
Net Credit: $363
Here's how the position looks now:




Trade Update (September 5, 2018)

Closed entire Elephant:

PUT side
20 RUT September 1530/1540 Credit Put spreads @0.10 Debit
Original Credit received was 0.60. Net gain of 0.50 per spread = $1000

1  IWM September 158 Puts @0.15 credit
Original debit paid was 1.04. Net loss is $89 on this one.


CALL side
16 RUT September 1795/1800 Credit Call spreads @0.10 Debit.
Original Credit received was 0.45. Net gain of 0.35 per spread = $560 (16 vertical spreads)

21 IWM September 180 Calls @0.05  credit
Original Debit paid was 0.17. Net loss of 0.12 per contract = $252


Combining it all: +1000 - 89 + 560 - 252 = $1,219
This is the profit today.

But, we must also add the First Call side played on this Elephant, closed on August 15
for a $364 gain.

The global result for this position is therefore $1,583



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