Stock / Symbol: Russell 2000 / RUT;
Option Strategy: [private_monthly]iron condor[/private_monthly];
Price at trade post: $1233.27;
Reasoning: With an expected deviation of[private_monthly] +/- 52 points between now and March expiration, I'm putting on a [private_monthly]bear call spread[/private_monthly] on RUT. I'm selling the [private_monthly]1280 calls (covering with the 1290's) and selling the 1150 puts (covering with the 1140's) [/private_monthly]. The trade's greeks are currently: -2.63 delta, 7.5 theta, and -24.3 vega. The probability of success on this trade is 89%.
Trade Details:[private_monthly]
STO -1 RUT Mar15 1280 call
BTO 1 RUT Mar15 1290 call
STO -1 RUT Mar15 1150 put
BTO 1 RUT Mar15 1140 put
for a min net credit of $1.20 per contract. (day order, limit order). The current mid is $1.15.
Requirements:
Cost/Proceeds ($120.00)
Option Requirement $1000
Total Requirements $880
Estimated Commission $6
[/private_monthly]
Max Risk: $880
Max Reward: $120 or 14%[private_monthly] between $1150 and $1280 [/private_monthly] by Mar 20th
Profit Range: [private_monthly]$1150 to $1280 by Mar 20th[/private_monthly]
Suggested Upside stop: $1260
Suggested Downside stop: $1180
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