Stock / Symbol: Russell 2000 / RUT
Strategy: Bear Call Spread
Trade entry date / price: 23 Nov 2020 / $1805
Price at this post: $1831
Update / Reasoning: With RUT trading below our last adjustment, we're going to enter in our exit order. At a debit of $0.10 per contract, we'll end up with the trade's original profit potential upon fill. Current Greeks are: -1.4 Delta, 12.0 Theta, and -4.2 Vega.
Trade Exit Order:
BTC 1 RUT 04Dec20 1900 call
STC 1 RUT 04Dec20 1910 call
For a max net debit of $0.10 per contract (GTC order, limit order). The mid is currently at a debit of $0.225.
Analysis:
Adjusted Max Risk: $935
Max Reward: $65 or 7% with RUT under $1900 at market close on Dec 4th
Profit Range: RUT at/under $1900 at market close on Dec 4th
Estimated Commission (round trip): $5.20
Upside Stop at: $1900
Anticipated Profit / Loss upon fill: $55 or 5.9% (pre commission)
