July RUT Elephant

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<b>Entered on Friday May 29</b><br />
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<b>Trade Details:</b><br />
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4 July RUT 1140/1130 Credit Put spread @0.80 credit each<br />
2 July RUT 1590/1600 Credit Call spread @1.00 credit each<br />
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2 July IWM 160 Long Calls @0.45 debit each<br />
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<a name='more'></a>Net Credit: $430<br />
Max Risk: $3,570<br />
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Risk Profile<br />
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<a href="https://1.bp.blogspot.com/-A6sctwPyp6Q/XtKZMbbGVLI/AAAAAAAAGx4/FwytTch3ElYdTqMYt3zXOnClUZWNNyDcgCNcBGAsYHQ/s1600/RUT-Elephant-Risk-Profile.PNG" imageanchor="1"><img border="0" data-original-height="473" data-original-width="1209" height="250" src="https://1.bp.blogspot.com/-A6sctwPyp6Q/XtKZMbbGVLI/AAAAAAAAGx4/FwytTch3ElYdTqMYt3zXOnClUZWNNyDcgCNcBGAsYHQ/s640/RUT-Elephant-Risk-Profile.PNG" width="640" /></a></div>
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RUT Chart for future reference:<br />
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<a href="https://1.bp.blogspot.com/-nWtWIHzOJ8A/XtKZRw6lnYI/AAAAAAAAGx8/vw1L6R8LPGQriHQ58pO32OiWRTJxlFsWQCNcBGAsYHQ/s1600/RUT-20200530.PNG" imageanchor="1"><img border="0" data-original-height="867" data-original-width="1198" height="462" src="https://1.bp.blogspot.com/-nWtWIHzOJ8A/XtKZRw6lnYI/AAAAAAAAGx8/vw1L6R8LPGQriHQ58pO32OiWRTJxlFsWQCNcBGAsYHQ/s640/RUT-20200530.PNG" width="640" /></a></div>
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<b>Trade Update – June 8, 2020</b><br />
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<a href="https://1.bp.blogspot.com/-4G43pOjuy5Q/Xt5A_sHHepI/AAAAAAAAGyc/LA02qJEcnXwaMhFUtROFwBCRnl3w5Ml3ACNcBGAsYHQ/s1600/RUT-20200608.PNG" imageanchor="1"><img border="0" data-original-height="868" data-original-width="1181" height="470" src="https://1.bp.blogspot.com/-4G43pOjuy5Q/Xt5A_sHHepI/AAAAAAAAGyc/LA02qJEcnXwaMhFUtROFwBCRnl3w5Ml3ACNcBGAsYHQ/s640/RUT-20200608.PNG" width="640" /></a></div>
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Closed Call side:<br />
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<b>2 July RUT 1590/1600 Credit Call spread @3.95 debit each</b><br />
Original credit was 1.00. Loss of 2.95 per spread (-$590)<br />
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<b>2 July IWM 160 Long Calls @2.75 credit each</b><br />
Original debit was 0.45. Net gain of 2.30 per contract (+$460)<br />
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The Call side therefore results in a loss of <b>$130</b><br />
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The Put side remains in play. With its $320 total credit, it has more than enough to compensate for this manageable loss on the Call side.<br />
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<b>Trade Update – July 17, 2020</b><br />
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<b>Put side expires</b><br />
4 July RUT 1140/1130 Credit Put spread @0.80 credit each<br />
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Max profit reached of $320<br />
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This, combined with the earlier $120 loss on the Call side represents a net profit of <b><span>$190</span></b><br />
This return represents a <b><span>+5.3%</span></b> return on a risk of $3570<br />
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