Stock / Symbol: Russell 2000 / RUT
Option Strategy: [private_monthly]bull put spread[/private_monthly]
Price at trade post: $740.23
Reasoning: Time to take advantage of the shellacking the market has taken this month. [private_monthly]Putting on a bull put spread on RUT here. If the market rebounds, we'll look to add a bear call spread, making this an iron condor. If RUT trades down to $699, we'll either stop out of the trade or adjust by rolling to a further out of the money spread. Probability of success on this trade is 86%.[/private_monthly]
Trade Details:[private_monthly]
STO -1 RUT Jun12 680 put
BTO 1 RUT Jun12 670 put
for a min net credit of $0.75 per contract (day order, limit order). If not filled today, ok to try again on Monday.
Requirements:
Cost/Proceeds ($75.00)
Option Requirement $1,000.00
Total Requirements $925.00
Estimated Commission $12.95
[/private_monthly]
Max Risk: $925
Max Reward: $75 or 8.2% between $0 and $680 by Jun 15
Profit Range: $0 to $679.20 by Jun 15
Suggested Downside stop: @ $699
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