Stock / Symbol: Russell 2000 / RUT;
Option Strategy: [private_monthly]iron condor[/private_monthly];
Price at trade post: $1053.50
Reasoning: With 34 days till October expiration, I'm putting on an [private_monthly] iron condor[/private_monthly] on RUT. While we've got an expected deviation of[private_monthly] +/- 60 points between now and Oct expiration, I'm going to be more conservative and account for about 85 pts up and 110 pts down. I'm selling the 1140 calls, covering with the 1150 calls, and selling the 940 puts and covering with the 930 puts[/private_monthly]. The trade's overall greeks are: 0.40 delta, 6.5 theta, and -26 vega. The probability of success on this trade is 92%. If RUT trades [private_monthly]up to $1100 or down to $999, we'll either stop out of the trade or adjust it.[/private_monthly]
Trade Details:[private_monthly]
STO -3 RUT Oct13 1140 calls
BTO 3 RUT Oct13 1150 calls
STO -3 RUT Oct13 940 puts
BTO 3 RUT Oct13 930 puts
for a min net credit of $0.70 per contract. (day order, limit order). The current mid is $0.70. If not filled today, ok to try again Monday.
Requirements:
Cost/Proceeds ($210.00)
Option Requirement $3,000
Total Requirements $2,790
Estimated Commission $18
[/private_monthly]
Max Risk: $2,790
Max Reward: $210 or 7.5%[private_monthly] between $940 and $1140[/private_monthly] by Oct 18[private_monthly]
Profit Range: $850 to $955 by Oct 18
Suggested Upside stop: @ $1100
Suggested Downside stop: $999
[/private_monthly]
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