March 2020 RUT Elephant
<div dir="ltr" trbidi="on">
<div dir="ltr" trbidi="on">
<b>Trade Details:</b><br />
<br />
4 March RUT 1530/1520 Credit Put spread @0.60 credit each<br />
2 March RUT 1765/1775 Credit Call spread @1.00 credit each<br />
<br />
3 March IWM 177 Long Calls @0.31 debit each<br />
<br />
<a name='more'></a>Net Credit: $347<br />
Max Risk: $3,653<br />
<br />
Risk Profile<br />
<div>
<a href="https://1.bp.blogspot.com/-e6NeP8suMt0/Xjxcsqr16qI/AAAAAAAAGvE/TBD9VwRR_DsHNKs83LZImaM9NHfNThdIwCNcBGAsYHQ/s1600/March-RUT-Elephant-Risk-Profile.PNG" imageanchor="1"><img border="0" data-original-height="472" data-original-width="1179" height="256" src="https://1.bp.blogspot.com/-e6NeP8suMt0/Xjxcsqr16qI/AAAAAAAAGvE/TBD9VwRR_DsHNKs83LZImaM9NHfNThdIwCNcBGAsYHQ/s640/March-RUT-Elephant-Risk-Profile.PNG" width="640" /></a></div>
<br />
<br />
RUT Chart for future reference:<br />
<div>
<a href="https://1.bp.blogspot.com/-G6E4mkMuVFY/Xjxc1q0NkfI/AAAAAAAAGvI/_5tSzjQNOhwodmBlFo04AUm3pz3_oec4gCNcBGAsYHQ/s1600/Chart-RUT-20200206.PNG" imageanchor="1"><img border="0" data-original-height="871" data-original-width="1170" height="476" src="https://1.bp.blogspot.com/-G6E4mkMuVFY/Xjxc1q0NkfI/AAAAAAAAGvI/_5tSzjQNOhwodmBlFo04AUm3pz3_oec4gCNcBGAsYHQ/s640/Chart-RUT-20200206.PNG" width="640" /></a></div>
<br />
<br />
<hr />
<b>Trade Update – February 25, 2020</b><br />
<br />
<div>
<a href="https://1.bp.blogspot.com/-jjX4n1gSLqI/XlVPgal11sI/AAAAAAAAGvw/7IGkMKCO9k0A7UJNW4-7wMW1eCzptnaZwCNcBGAsYHQ/s1600/RUT-Sell-off.PNG" imageanchor="1"><img border="0" data-original-height="872" data-original-width="1261" height="442" src="https://1.bp.blogspot.com/-jjX4n1gSLqI/XlVPgal11sI/AAAAAAAAGvw/7IGkMKCO9k0A7UJNW4-7wMW1eCzptnaZwCNcBGAsYHQ/s640/RUT-Sell-off.PNG" width="640" /></a></div>
<br />
<br />
Closed Put side<br />
<b>4 March RUT 1530/1520 Credit Put spread @2.20 debit each</b><br />
<br />
Original credit was 0.60<br />
Loss is 1.60 per ($640 in 4 spreads)<br />
<br />
<br />
Opened new Credit Put spread<br />
<b>4 March RUT 1415/1425 Credit Put spread @0.65 credit.</b><br />
<br />
<br />
We now have a 1415/1425/1765/1765 RUT position, and still the long IWM Calls<br />
<div>
<a href="https://1.bp.blogspot.com/-HcBeL62X_0E/XlVPJ-H8rTI/AAAAAAAAGvo/WUcNgI-3oxkeGy9qnP7eozmhINKS_0qXwCNcBGAsYHQ/s1600/RUT-Adjusted-Elephant.PNG" imageanchor="1"><img border="0" data-original-height="471" data-original-width="1317" height="228" src="https://1.bp.blogspot.com/-HcBeL62X_0E/XlVPJ-H8rTI/AAAAAAAAGvo/WUcNgI-3oxkeGy9qnP7eozmhINKS_0qXwCNcBGAsYHQ/s640/RUT-Adjusted-Elephant.PNG" width="640" /></a></div>
<br />
<br />
<br />
<hr />
<b>Trade Update – March 6, 2020</b><br />
<br />
<br />
I've had very little time to update the positions in a timely matter lately. Work keeps getting in the way at the office more than ever.<br />
<br />
With RUT around 1475, I closed the Put side for a second time in this position:<br />
Closed Put side<br />
<b>4 March RUT 1425/1415 Credit Put spread @2.40 debit each</b><br />
<br />
Original credit was 0.65<br />
Loss is 1.75 per ($700 in 4 spreads)<br />
<br />
I decided to go out to April to deploy at a greater distance<br />
Opened new Credit Put spread<br />
<b>4 April RUT 1140/1130 Credit Put spread @0.70 credit.</b><br />
<br />
We now have a 1140/1130 April Credit Put spread<br />
1765/1765 March Credit Call spread<br />
and still the long IWM Calls<br />
<br />
<br />
<br />
<br />
<hr />
<b>Trade Update – March 13, 2020</b><br />
<br />
Closed <b>4 April RUT 1140/1130 Credit Put spread @2.30 debit.</b><br />
Loss is 1.60 per, or $640<br />
<br />
I'm not deploying any more Put spreads at the moment. Market seems too shaky.<br />
We'll see on Monday<br />
<br />
<br />
<hr />
<b>Trade Update – March 19, 2020</b><br />
<br />
Sold <b>4 April RUT 750/740 Credit Put spread @1.60 credit.</b><br />
Net credit $640<br />
<br />
We now have a 750/740 April Credit Put spread<br />
1765/1765 March Credit Call spread<br />
and still the long IWM Calls<br />
<br />
Total credit $709<br />
<br />
<br />
<br />
<hr />
<b>Trade Update – April 18, 2020</b><br />
<br />
<b> The position expires</b><br />
<br />
750/740 April Credit Put spread + 1765/1765 March Credit Call spread<br />
Profit: $709<br />
<br />
Combining this profit with earlier losses of 700 and 640 we have a final net loss of<br />
-700 – 640 + 709 = <span><b>$631</b></span><br />
<br />
On an initial Max Risk of $3,653 this represents a<span><b> -17.2%</b></span> Return on Risk<br />
<br />
<br />
<a href="http://www.the-lazy-trader.com/p/options-trading-results.html" target="_blank">Check out Track Record</a><br />
<br />
<br />
<br />
<div>
<b>Go to the bottom of this page in order to see the Legal Stuff</b></div>
</div>
</div>
Leave a Comment