Stock / Symbol: Russell 2000 / RUT;
Option Strategy: [private_monthly]bear call spread[/private_monthly];
Trade entry date: Jan;
Price at trade entry: $880;
Price at this adjustment: $884;
Current Position:
[private_monthly]
short -2 RUT Feb13 920 calls
Long 2 RUT Feb13 930 calls
at a net credit of $1.00 per contract.
[/private_monthly]
Reasoning: I had thought that RUT would have pulled back by now, it hasn't. Going to add the put spread here, making this an iron condor. Current greeks are:-11.2 delta, 7.4 theta, and -36 vega. This adjustment will change the greeks to: Current greeks are:-6.8 delta, 11.3 theta, and -52 vega. With this adjustment, we'll move the upside stop to [private_monthly]$895 and add a downside stop at $842,.[/private_monthly]
Trade Adjustment Details:[private_monthly]
STO -2 RUT Feb13 820 puts
BTO 2 RUT Feb13 810 puts
for a min net credit of $0.54 per contract. (day order, limit order). The current mid is $0.57. Try for mid less .02. If not filled today, ok to try again tomorrow.
Max Risk: $1,690
Max Reward: $310 or 18%[private_monthly] between $820 and $920[/private_monthly] by Feb 15[private_monthly]
Profit Range: $820 to $920 by Feb 15
Suggested Upside stop: @ $895
Suggested Downside stop: @ $842
[/private_monthly]
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