Stock / Symbol: iShares Russell 2000 Index / IWM
Option Strategy: [private_monthly]double calendar[/private_monthly]
Trade entry date / price: May 16 / $98.30
Price at trade post: $98
Remaining Position:
short -5 IWM MayWk4 96 puts
long 5 IWM Jun13 96 puts
Reasoning: Earlier today, we booked an after commission profit of $120 on the call spread portion of the trade. Now, with the market pullback, we can sell our put spread for close to what we paid for it, leaving us with a nice 8% gain in under a week.
Closing Trade Details:
BTC -5 IWM MayWk4 96 puts
STC 5 IWM Jun13 96 puts
for a min net credit of $0.98 per contract (GTC order, limit order). The current mid is $0.96. I was filled at $1.00.
Max Risk: $965 (on original position)
Max Reward: $150 or 15% between $96 and $100 by May 24
Profit Range: $95.50 to $100.50 by May 24
Suggested Downside stop: @ $96
Suggested Upside stop: @ $100
Realized Profit / Loss: $80 or 8.3% (post commissions)
[/private_monthly]
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