Stock / Symbol: Russell 2000 / RUT
Strategy: Bear Call Spread
Trade entry date / price: 08 Dec 2020 / $1907
Price at this post: $1905
Update: Our entry order was filled on the 8th at 8:52am PST. With RUT trading pretty much at our entry point, the position is essentially at break even at the moment. Going to enter our exit order now, with the idea of capturing a $55 per contract gain. The position's current Greeks are: -1.6 Delta, 4.5 Theta, and -5.5 Vega.
Trade Exit Order:
BTC 1 RUT 24Dec20 1985 call
STC 1 RUT 24Dec20 1990 call
For a max net debit of $0.35 per contract (GTC order, limit order). The mid is currently at a debit of $0.95. To get filled prior to the week of our contract's expiration, RUT will likely need to trade under $1870 near term.
Requirements:
Cost/Proceeds: ($90)
Margin Requirement: $500
Total Requirements: $410
Analysis:
Max Risk: $410
Max Reward: $90 or 22 % with RUT under $1985 at market close on Dec 24th
Profit Range: RUT at/under $1985.70 at market close on Dec 24th
Estimated Commission (round trip): $2.60
Upside Stop at: $1985
Anticipated Profit / Loss upon fill: $55 or 13% (pre commission)
