Stock / Symbol: Russell 2000 / RUT
Option Strategy: bear call spread
Trade entry date: Dec 19
Price at trade entry: $850.50
Price at this post: $838.80
Current Position:
Short -3 RUT Jan13 885 calls
Long 3 RUT Jan13 895 calls
for a credit of $1.38 per contract.
+
Long 1 RUT Jan13 900 call
at a debit of $1.55
Reasoning: Just 8 days into this trade, we're already at 50% of our max profit on the trade. I'm going to take this trade off now on a long shot that Congress comes up a resolution to the fiscal cliff, and sends the market racing higher. The current greeks on the trade are: -7.6 delta, 6.28 positive theta, and -18.5 vega.
Trade Details:[private_monthly]
BTC -3 RUT Jan13 885 calls
STC 3 RUT Jan13 895 calls
for a max net debit of $0.60 per contract. (GTC order, limit order).
then, once filled, immediately:
STC 1 RUT Jan13 900 call
at the market
Max Risk: $2,750
Max Reward: $259 or 9.4% between $0 and $885 by Jan 18[private_monthly]
Profit Range: 0 to $885.15 by Jan 18
Suggested Upside stop: @ $852 (lowered from $865)
Suggested Downside stop: NA
Realized Profit / Loss upon fill: $125 or 4.5% (pre-commission)
[/private_monthly]
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