Stock / Symbol: Russell 2000 Index / RUT
Option Strategy: Bear Call spread
Trade entry date / price: 25 Oct 2019 / $1562
Price at this post: $1593.80
Update / Reasoning: It's looking like our short 1605 strike calls will expire worthless tomorrow. I accidentally used the AM expiring options, which stop trading 15 minutes after market close today. To be safe, I'm entering a closing order now. If you'd like to take a little more risk, you can can just let the position expire worthless tomorrow to capture the trade's full profit potential. However, if the 1605 call is ITM, you'll have to buy it back before expiration.
Closing Trade Details:
BTC 1 RUT 15Nov19 1605 call
STC 1 RUT 15Nov19 1610 call
for a max net debit of $0.25 per contract (GTC order, limit order). The mid is currently at $0.28
Analysis:
Max Risk: $415
Max Reward: $85 or 20% by Nov 15th with RUT at/under $1605
Profit Range: RUT at/under $1605 by Nov 15th
Suggested Upside Stop: $1610
Anticipated Profit / Loss upon fill: $60 or 14.5%
Estimated Trade cost (round trip): $6
