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Starting a RUT JUN Weirdor

Discussion in 'Options' started by tom, May 10, 2014.

  1. tom

    tom Administrator Staff Member

    I just posted an article about a June Weirdor I started yesterday. It's not completely filled yet but I started building the position.

    http://capitaldiscussions.com/starting-a-rut-jun-weirdor/10245

    I managed to sell two call spreads for an average of $1.10 and seven put spreads at an average price of $1.0714 each. Both calls and puts were around 8 delta with 42 days to expiration. RVX was about 21.

    I'll keep building the position on Monday.
     

    Attached Files:

  2. tom

    tom Administrator Staff Member

    RUT jumped up today (currently +27.86 at 1135.08) The calls were sold on Friday for $1.10 and were at $3.10 when I bought them back today. The short puts are at a -3.64 delta according to Interactive Brokers Trader Workstation (TWS).

    The weekly RUT chart pushed above the moving average I use and the momentum has turned up. The daily chart shows strong momentum up. For the moment, it looks like the market wants to go higher. I'll leave the call side empty for now with no risk to the upside.

    If everything expired today, the trade would have a 7.8% yield on the required Portfolio Margin and a +2.45% return for the Reg-T margin required.

    I could have had an order in to buy back the calls at a bit lower price. I should have put orders in this last weekend to make it a no brainer.
     

    Attached Files:

  3. tom

    tom Administrator Staff Member

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