Stock / Symbol: Russell 2000 / RUT;
Option Strategy: butterfly call spread;
Price at trade post: $1265
Reasoning: I wanted to put on a bear call spread on RUT but with some protection, so I'm using a butterfly call spread. The trade's greeks are: -2.9 delta, 2.6 theta, and -7.9 vega. The probability of success on this trade is 84%.
Trade Details:[private_monthly]
STO -1 RUT Apr15 1300 call
BTO 2 RUT Apr15 1310 calls
STO -1 RUT Apr15 1320 call
for a min net credit of $0.65 per contract. (day order, limit order). The current mid is $0.67.
Requirements:
Cost/Proceeds ($65.00)
Option Requirement $1000
Total Requirements $935
Estimated Commission $6
[/private_monthly]
Max Risk: $915
Profit Range: [private_monthly]$0 to $1300 & $1320+ by Apr 17th[/private_monthly]
Suggested Upside stop: $1295
Suggested Downside stop: NA
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