Stock / Symbol: Russell 2000 / RUT;
Option Strategy: [private_monthly]calendar spread[/private_monthly];
Trade entry date / price: Feb 13 @ $920;
Price at this post: $910
Current Position:[private_monthly]
Long 1 RUT Mar13 900 put
Short -1 RUT FebWk4 900 put
Reasoning: Coming into the trade, I had thought that if the RUT pulled back to around 910, that would be a good spot to close the trade. Including the profit made on the call calendar, we're looking at roughly a 65% gain (at current risk levels) in just over a week. Current greeks are: -25 delta, 75 theta, and 74 vega.
Closing Details:[private_monthly]
STC 1 RUT Mar13 900 put
BTC -1 RUT FebWk4 900 put
for a min net credit of $9.65 per contract. (day order, limit order). The current mid is $10.25. Try for mid less .10. (while writing this, I was filled at $10.00.)
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
Realized Profit / Loss: $424 or 72% (pre-commission)
[/private_monthly]
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