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August 27, 2013

$RUT Weekly Trade


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Traders,
Russell 2000 Index is trading around 1043. We are looking for a bit of sideways trading over the next few days heading into Labor Day weekend. We are going to sell 1040 put and 1050 call that expire this week (Aug 30) and buy 1040 put and 1050 call that expire next week (Sep 6).
Trade: BUY +1 DBL DIAG RUT 100 (Weeklys) SEP1 13/AUG5 13 1050/1040/1050/1040 CALL/PUT/CALL/PUT @8.90 LMT
Margin: $890 per spread
Profit Target: $130 per spread (15% of margin)
Stop: $175 per spread (20% of margin)
Duration: 2-3 days
Risk Profile:

Trade:


This trade was closed for 1.63% gain in 2 weeks.

August 19, 2013

$RUT Weekly Trade


Traders,
Russell 2000 Index is trading around 1021. We are looking for a bit of sideways trading over the next few days after coming off of recent highs. We are going to sell 1020 put and 1030 call that expire this week (Aug 23) and buy 1020 put and 1030 call that expire next week (Aug 30).
Trade: BUY +1 DBL DIAG RUT 100 (Weeklys) AUG5 13/AUG4 13 1030/1020/1030/1020 CALL/PUT/CALL/PUT @8.50 LMT
Margin: $850 per spread
Profit Target: $127 per spread (15% of margin)
Stop: $170 per spread (20% of margin)
Duration: 1-2 days

Update 8/21/13

This trade was closed for 13% gain

August 5, 2013

$RUT Weekly Trade


Traders,
Russell 2000 Index is trading around 1060. We are looking to sell 1060 put that expires this week (Aug2) and buy a 1060 put that expires next week (Aug). This makes it a calendar spread that benefits from a rise in volatility (IV) and passage of time (Theta). This trade is made up of weekly/monthly options which make it a very risky trade, so manage risk accordingly.
Trade: BUY +1 CALENDAR RUT 100 AUG 13/AUG2 13 1060 PUT @4.15 LMT
Margin: $415 per spread
Profit Target: $65 per spread (15% of margin)
Stop: $85 per spread (20% of margin)
Duration: 2-3 days
Risk Profile:

Trade: