Stock / Symbol: Russell 2000 / RUT;
Option Strategy: [private_monthly]iron condor[/private_monthly];
Price at trade post: $1103
Reasoning: With 29 days till December expiration, I'm putting on an [private_monthly] iron condor[/private_monthly] on RUT. we have an expected deviation of[private_monthly] +/- 53 points between now and Dec expiration. I'm going to be a little more conservative and account for a move of 90 or so points either way. I'm selling the 1190 calls, covering with the 1200 calls, and selling the 1010 puts and covering with the 1000 puts[/private_monthly]. The trade's overall greeks are: -8 delta, 3.5 theta, and -13 vega. The probability of success on this trade is 91%. If RUT trades [private_monthly]up to $1145 or down to $1060, we'll either stop out of the trade or adjust it.[/private_monthly]
Trade Details:[private_monthly]
STO -2 RUT Dec13 1190 calls
BTO 2 RUT Dec13 1200 calls
STO -2 RUT Dec13 1010 puts
BTO 2 RUT Dec13 1000 puts
for a min net credit of $0.60 per contract. (day order, limit order). The current mid is $0.59. If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds ($120.00)
Option Requirement $2,000
Total Requirements $1,880
Estimated Commission $12
[/private_monthly]
Max Risk: $1,880
Max Reward: $120 or 6.3%[private_monthly] between $1010 and $1190[/private_monthly] by Dec 20[private_monthly]
Profit Range: $1010 to $1190 by Oct 18
Suggested Upside stop: @ $1145
Suggested Downside stop: $1060
[/private_monthly]
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