December RUT Elephant

<div dir="ltr" trbidi="on">
<div dir="ltr" trbidi="on">
<b>Trade Details:</b><br />
<br />
4 Dec RUT 1410/1400 Credit Put spread @0.70 credit each<br />
2 Dec RUT 1660/1670 Credit Call spread @1.00 credit each<br />
<br />
3 Dec IWM 167 Long Calls @0.28 debit each<br />
<br />
<a name='more'></a>Net Credit: $396<br />
Max Risk: $3,604<br />
<br />
Risk Profile<br />
<div>
<a href="https://1.bp.blogspot.com/-eZTb4DailCg/XbM6Cx_krLI/AAAAAAAAGr0/St6k03jgsiIacfDWBC-M1yAF6AQfRtqCQCNcBGAsYHQ/s1600/RUT-Risk-Profile-For-December-Iron-Condor.PNG" imageanchor="1"><img border="0" data-original-height="480" data-original-width="1184" height="258" src="https://1.bp.blogspot.com/-eZTb4DailCg/XbM6Cx_krLI/AAAAAAAAGr0/St6k03jgsiIacfDWBC-M1yAF6AQfRtqCQCNcBGAsYHQ/s640/RUT-Risk-Profile-For-December-Iron-Condor.PNG" width="640" /></a></div>
<br />
<br />
<br />
RUT Chart for future reference:<br />
<div>
<a href="https://1.bp.blogspot.com/-U78NO3JT-DQ/XbM6JroQycI/AAAAAAAAGr4/b9s3GorttxUwnPco1-tRt8yBc2Rbv6spwCNcBGAsYHQ/s1600/RUT-Chart-For-December-Iron-Condor.PNG" imageanchor="1"><img border="0" data-original-height="867" data-original-width="1163" height="476" src="https://1.bp.blogspot.com/-U78NO3JT-DQ/XbM6JroQycI/AAAAAAAAGr4/b9s3GorttxUwnPco1-tRt8yBc2Rbv6spwCNcBGAsYHQ/s640/RUT-Chart-For-December-Iron-Condor.PNG" width="640" /></a></div>
<br />
<br />
<hr />
</div>
<div dir="ltr" trbidi="on">
<b>Trade Update – November 5, 2019</b><br />
<br />
<div>
<a href="https://1.bp.blogspot.com/-gkh9irh-mz4/XcGVy5NQtZI/AAAAAAAAGsI/fCpclR_mllIjfg9QyT0TPnO1ssMbGhR1ACNcBGAsYHQ/s1600/RUT-Adjustment.PNG" imageanchor="1"><img border="0" data-original-height="870" data-original-width="1091" height="508" src="https://1.bp.blogspot.com/-gkh9irh-mz4/XcGVy5NQtZI/AAAAAAAAGsI/fCpclR_mllIjfg9QyT0TPnO1ssMbGhR1ACNcBGAsYHQ/s640/RUT-Adjustment.PNG" width="640" /></a></div>
<br />
Closed Call side:<br />
<b>2 Dec RUT 1660/1670 Credit Call spread @2.40 debit each</b><br />
Original Credit received was 1.00 per<br />
Loss: 1.40 per spread = $280 loss for 2 spreads<br />
<b><br /></b>
<b>3 Dec IWM 167 Long Calls @0.63 credit each</b><br />
Original debit paid: 0.28 per contract<br />
Gain: 0.35 per contract = $105 for 3 contracts played.<br />
<br />
Combining the $280 loss and the $105 gain, it is a net loss of <span><b>$175</b></span> on the Call side of the position <br />
<br />
This is a manageable loss, considering that the Put side contains $280 credit, more than enough to eclipse this loss suffered on the Call side. Also, now the Put side (at 1410) is much safer since RUT has gone above 1600.<br />
<br />
<br />
<hr />
<b>Trade Update – November 27, 2019</b><br />
<br />
<div>
<a href="https://1.bp.blogspot.com/-Ux9Pw1GoVkg/Xd6lLxU2GtI/AAAAAAAAGsY/1D7tzzWoxPAc0R6c6A8DdSiePsFfwxprACNcBGAsYHQ/s1600/RUT-Chart-November-27-2019.PNG" imageanchor="1"><img border="0" data-original-height="868" data-original-width="1196" height="462" src="https://1.bp.blogspot.com/-Ux9Pw1GoVkg/Xd6lLxU2GtI/AAAAAAAAGsY/1D7tzzWoxPAc0R6c6A8DdSiePsFfwxprACNcBGAsYHQ/s640/RUT-Chart-November-27-2019.PNG" width="640" /></a></div>
<br />
Closed the Put side<b><br /></b><br />
<b>4 Dec RUT 1410/1400 Credit Put spread @0.05 debit each</b><br />
<br />
Original Credit received was 0.70 per<br />
Profit: 0.65 per spread = <span><b>$260</b></span> for 4 spreads.<br />
<br />
Combining the loss suffered on the Call side, with the gain from the Put side, this was a net <span><b>$85 </b></span>gain (-$175 + $260)<br />
<br />
$85 gain on a $3,604 max risk represents a <span><b>+2.4% </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 2019 Track Record</a><br />
<br />
<br />
<div>
<b>Go to the bottom of this page in order to see the Legal Stuff</b></div>
</div>
</div>