Stock / Symbol: Russell 2000 / RUT;
Option Strategy: [private_monthly]iron condor[/private_monthly];
Price at trade post: $1176.65;
Reasoning: With RUT hovering near its 200 day average, I'm putting on a [private_monthly]iron condor[/private_monthly] on RUT. I'm selling the [private_monthly]1040 put and the 1300 call, covering with the 1030 put and 1310 call[/private_monthly]. The trade's greeks are currently: 0.5 delta, 3.4 theta, and -8.8 vega. The probability of success on this trade is 89%.
Trade Details:[private_monthly]
STO -1 RUT Feb15 1040 put
BTO 1 RUT Feb15 1030 put
STO -1 RUT Feb15 1300 call
BTO 1 RUT Feb15 1310 call
for a min net credit of $0.85 per contract. (GTC order, limit order). The current mid is $0.75
Requirements:
Cost/Proceeds ($85.00)
Option Requirement $1000
Total Requirements $915
Estimated Commission $6
[/private_monthly]
Max Risk: $915
Max Reward: $85 or 9.0%[private_monthly] between 1040 and 1300 [/private_monthly] by Feb 20
Profit Range: [private_monthly]1040 to 1300 by 20[/private_monthly]
Suggested Upside stop: 1251
Suggested Downside stop: 1104
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