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BookingAlpha Option Trading Advisory

Friday, September 20, 2019

November RUT Elephant

Trade Details:

4 Nov RUT 1400/1390 Credit Put spread @0.65 credit each
2 Nov RUT 1680/1690 Credit Call spread @1.00 credit each

3 Nov IWM 169 Long Calls @0.30 debit each

Net Credit: $370
Max Risk: $3,630

Risk Profile


RUT Chart for future reference:



Trade Update - September 30, 2019

Closed Call side of the position:

2 Nov RUT 1680/1690 Credit Call spread @0.20 debit each
Original credit received was 1.00 per spread
Net gain: 0.80 per spread = $160

3 Nov IWM 169 Long Calls @0.05 credit each
Original debit paid was 0.30 per contract
Net loss: 0.25 per contract = $75

Combining the results $160 - $75 = +$85 gain
The max possible gain on the Call side was $110, so we've achieved way more than half the max and we are still 46 days away from expiration, which gives a chance for re-deployment of a new Call side.



Trade Update - October 25, 2019

Closed Put side of the position:

4 Nov RUT 1400/1390 Credit Put spread @0.15 debit each

Original credit received was 0.65 per spread
Net gain: 0.50 per spread = $200 in 4 spreads

Combining this Put side profit with the earlier Call side profit of $85, it is a total gain of $285
On an initial Max Risk of $3,630 in the position, this represents a +7.9% Return on Risk

The entire position is now closed, 21 days before November expiration.


Check out 2019 Track Record

Go to the bottom of this page in order to see the Legal Stuff

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