RLS Settlement Value Trends

Here is a view of the RLS settlement value for the last 3.5 years.  The key takeaway here is the RLS settlement value changed more than 60 points between options expiry 6 times.   5 of which occurred in 2008 (Jan, Aug, Oct, Nov, Dec).

Based on this, TNAPS’ strategy is to sell 150-170 point spreads for a decent chance at booking profit with a target of 5-8%.  You won’t hit any home runs with this method, but hopefully you’ll pick up some steady income.  But one replay of 2008 and you’re toast. ^_^

August RUT Iron Condor and July Close

The July Bull Put 735/740 and Bear Call 860/870 Russell 2000 Iron Condor expires worthless and we experience max profit.  I tempted death this month by not following the rules and not adjusting my position when the RUT reached 860.   Luckily and I mean luckily the RUT settled at 826.81.

August Spreads

Sell Bull Put – 735/745 & Bear Call 910/920 for a net credit of 12.5%

Sell Bull Put – 720/730 for a net credit of 7.5%

Net Credit: $.86 per share or $86 per contract (each contract is 100 shares)

  • $1000 margin requirement per contract
  • $86 / $1000 = 8.6% return on investment
  • Total potential loss of $914 ($1000-$86) per contract