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BookingAlpha Option Trading Advisory

Thursday, February 6, 2020

March 2020 RUT Elephant

Trade Details:

4 March RUT 1530/1520 Credit Put spread @0.60 credit each
2 March RUT 1765/1775 Credit Call spread @1.00 credit each

3 March IWM 177 Long Calls @0.31 debit each

Net Credit: $347
Max Risk: $3,653

Risk Profile


RUT Chart for future reference:



Trade Update - February 25, 2020



Closed Put side
4 March RUT 1530/1520 Credit Put spread @2.20 debit each

Original credit was 0.60
Loss is 1.60 per  ($640 in 4 spreads)


Opened new Credit Put spread
4 March RUT 1415/1425 Credit Put spread @0.65 credit.


We now have a 1415/1425/1765/1765 RUT position, and still the long IWM Calls




Trade Update - March 6, 2020


I've had very little time to update the positions in a timely matter lately. Work keeps getting in the way at the office more than ever.

With RUT around 1475, I closed the Put side for a second time in this position:
Closed Put side
4 March RUT 1425/1415 Credit Put spread @2.40 debit each

Original credit was 0.65
Loss is 1.75 per  ($700 in 4 spreads)

I decided to go out to April to deploy at a greater distance
Opened new Credit Put spread
4 April RUT 1140/1130 Credit Put spread @0.70 credit.

We now have a 1140/1130 April Credit Put spread
1765/1765 March Credit Call spread
and still the long IWM Calls





Trade Update - March 13, 2020

Closed 4 April RUT 1140/1130 Credit Put spread @2.30 debit.
Loss is 1.60 per, or  $640

I'm not deploying any more Put spreads at the moment. Market seems too shaky.
We'll see on Monday



Trade Update - March 19, 2020

Sold 4 April RUT 750/740 Credit Put spread @1.60 credit.
Net credit $640

We now have a 750/740 April Credit Put spread
1765/1765 March Credit Call spread
and still the long IWM Calls

Total credit  $709




Trade Update - April 18, 2020

 The position expires

750/740 April Credit Put spread + 1765/1765 March Credit Call spread
 Profit: $709

Combining this profit with earlier losses of 700 and 640 we have a final net loss of
-700 - 640 + 709 = $631

On an initial Max Risk of $3,653 this represents a -17.2% Return on Risk


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