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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.