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August 19, 2013

$RUT Weekly Trade

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