Stock / Symbol: Russell 2000 / RUT
Option Strategy: [private_monthly]iron condor[/private_monthly]
Price at trade post: $834
Reasoning: With 30 days till November expiration, it's time to put on a new [private_monthly]Iron Condor on RUT. With an expected deviation of 45 points between now and November expiration, I'm selling the 885 calls and the 780 puts.[/private_monthly] The trade overall is 1.02 delta(neutral), 11.62 theta, and -36.59 vega. [private_monthly]The calls we're selling have a delta of .07 and the puts we're setting have a -.14 delta. The probability of success on this trade is 85%. If RUT either trades up to $860 or down to $805, we'll either stop out of the trade or adjust by rolling to a further out of the money call or put spread. Once filled, immediately set separate GTC orders to buy back the put spread and the call spread for $0.15 each. [/private_monthly]
Trade Details:[private_monthly]
STO -2 RUT Nov12 885 calls
BTO 2 RUT Nov12 895 calls
STO -2 RUT Nov12 780 puts
BTO 2 RUT Nov12 770 puts
for a min net credit of $1.30 per contract (day order, limit order). If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds ($260.00)
Option Requirement $2,000.00
Total Requirements $1,740.00
Estimated Commission $12
[/private_monthly]
Max Risk: $1740
Max Reward: $260 or 14.9%[private_monthly] between $780 and $885[/private_monthly] by Nov 16[private_monthly]
Profit Range: $779.50 to $886.25 by Nov 16
Suggested Upside stop: @ $860
Suggested Downside stop: @ $805
[/private_monthly]
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