Stock / Symbol: Russell 2000 / RUT
Option Strategy: [private_monthly]iron condor[/private_monthly]
Price at trade post: $905
Reasoning: With 29 days till Mayy expiration, I'm putting on an [private_monthly] iron condor[/private_monthly] on RUT. We've got an expected deviation of[private_monthly] +/- 50 points between now and May expiration; so I'm selling the 955 calls, covering with the 965 calls, and selling the 850 puts and covering with the 840 puts[/private_monthly]. The trade's overall greeks are: -3 delta, 13.8 theta, and -48 vega. The probability of success on this trade is 79%. If RUT trades [private_monthly]up to $925 or down to $870, we'll either stop out of the trade or adjust it.[/private_monthly]
Trade Details:[private_monthly]
STO -2 RUT May13 955 calls
BTO 2 RUT May13 965 calls
STO -2 RUT May13 850 puts
BTO 2 RUT May13 840 puts
for a min net credit of $2.20 per contract. (day order, limit order). The current mid is $2.30. If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds ($440.00)
Option Requirement $2,000
Total Requirements $1,560
Estimated Commission $12
[/private_monthly]
Max Risk: $1,560
Max Reward: $440 or 28%[private_monthly] between $850 and $955[/private_monthly] by May 17[private_monthly]
Profit Range: $850 to $955 by May 17
Suggested Upside stop: @ $925
Suggested Downside stop: $870
[/private_monthly]
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