Stock / Symbol: Russell 2000 / RUT;
Option Strategy: [private_monthly]calendar spread[/private_monthly];
Price at trade entry: $920;
Price at this adjustment: $931;
Current Position:[private_monthly]
Long 1 RUT Mar13 900 put
Short -1 RUT FebWk4 900 put
Long 1 RUT Mar13 940 call
Short -1 RUT FebWk4 940 call
Reasoning: Up about 20% on the call calendar we added. I'm booking the gain on the call calendar here and going to see if we can finally get a bit of a pullback in this freight train of a market. Back to our original calendar, our greeks are: -17 delta, 0.7 theta, and 60 vega.
Trade Adjustment Details:[private_monthly]
STC 1 RUT Mar13 940 call
BTC -1 RUT FebWk4 940 call
for a min net credit of $5.75 per contract. (day order, limit order). The current mid is $6.20. Try for mid less .10. (I was filled at $6.30.)
Max Risk: $587 (down from $1200)
Max Reward: $400 or 68% (at current volatility level) [private_monthly] at $900[/private_monthly] by Feb 22[private_monthly]
Profit Range: between $885 and $915 by Feb 22
Suggested Upside stop: @ $945
Suggested Downside stop: @ $895
[/private_monthly]
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