Stock / Symbol: Russell 2000 / RUT;
Option Strategy: [private_monthly]bull put spread[/private_monthly];
Price at trade post: $1272;
Reasoning: I'm putting on a [private_monthly]bull put spread[/private_monthly] on RUT for August expiration. With a standard deviation of +/- 61 for RUT by Aug 21, I'm going a bit conservative and selling the [private_monthly]1160 puts (covering with the 1150's) [/private_monthly]. The trade's greeks are currently: 1.1 delta, 1.7 theta, and -6.3 vega. The probability of success on this trade is 95%.
Trade Details:[private_monthly]
STO -1 RUT Aug15 1160 put
BTO 1 RUT Aug15 1150 put
for a min net credit of $0.60 per contract. (GTC order, limit order). The current mid is $0.50.
Requirements:
Cost/Proceeds ($60.00)
Option Requirement $1000
Total Requirements $940
Estimated Commission $3
[/private_monthly]
Max Risk: $940
Max Reward: $60 or 6.3%[private_monthly] at / over $1160[/private_monthly] by Aug 21st
Profit Range: [private_monthly]at / over $1160 by Aug 21st [/private_monthly]
Suggested Upside stop: NA
Suggested Downside stop: $1210
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