Disclaimer

By browsing and reading content, links, feeds, email notifications, or any other information or service provided on this site, you agree to the
Terms and Conditions of Use

Search This Blog

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: