February 2011 RUT Open & January 2011 RUT Close

We experienced max profit for the January RUT Iron Condor (710-720/830-840) with the RLS settling around 783 on expiration Friday. There was no need to buy out the spread as risk was minimal.

The first leg of the February RUT Iron Condor spread opened on 1/25 was a 710/720. RUT was trading around 773.

January RUT

  • Buy 710 Puts @ 3.72
  • Sell 720 Puts @ 4.67
  • Sell 830 Calls @ 1.24
  • Buy 840 Calls @ .64

Net Credit: $1.55 per share or $155 per contract (each contract is 100 shares)

  • $1000 margin requirement per contract
  • $155 / $1000 = 15.5% return on investment
  • Total potential loss of $845 ($1000-$155) per contract

January 2011 RUT

January RUT Iron Condor spread opened on 12/20 was a 710/720 – 830/840. RUT was trading around 780 (110 point spread).

January RUT

  • Buy 710 Puts @ 3.19
  • Sell 720 Puts @ 4.01
  • Sell 830 Calls @ 1.67
  • Buy 840 Calls @ .94

* Net Credit: $1.55 per share or $155 per contract (each contract is 100 shares)
* $1000 margin requirement per contract
* $155 / $1000 = 15.5% return on investment
* Total potential loss of $845 ($1000-$155) per contract

December 2010 RUT

December RUT Iron Condor spread opened on 11/22 was a 660/670 – 780/790. RUT was trading around 725 (110 point spread).

December RUT

  • Buy 660 Puts @ 3.93
  • Sell 670 Puts @ 5.11
  • Sell 780 Calls @ .86
  • Buy 790 Calls @ .49

* Net Credit: $1.55 per share or $155 per contract (each contract is 100 shares)
* $1000 margin requirement per contract
* $155 / $1000 = 15.5% return on investment
* Total potential loss of $845 ($1000-$155) per contract

I hoped the RLS wouldn’t open above 780 with RUT closing at 776.56 Thursday before expiry. It had showed no signs of being able to open above 780. The RLS settled at 777.01 so the options expire worthless, and we essentially experience max profit… well almost max profit, I did buy back the 660/670 put spread on 12/13 for a nickel so I could adjust the 780/790 leg if it became absolutely necessary.

November 2010 RUT

I was able to buy out of my 50 point spread (Bull Put Credit 700/710 -Bear Call Credit 760/770) for .40 per contract. Now that TNAPS is back on track, I’ll see what to do for December.

I’ll likely be looking for a 120 point spread when I enter. A little less profit, and a little less risk.

October 2010 RUT

Currently in a September 690/700 Bull Put Credit Spread, trying to move to a October anything with less than 2 weeks remaining in September expiry.

In the month of August, I forgot to post about moving to an August 690/700.  That is old news, now I’m trying to move to October, where everything will be great, and TNAPS will rise again.

July/August RUT

Upper Leg Close

Step 1 of July’s strategy worked out nicely.  I was able to book a 10% profit by selling out of the 710/720 Bear Call Credit Spread for .$05 per contract.  If you recall, the initial credit on the 710/720 Bear Call was $1.05 per contract for a 10.5% potential ROI.

Step 2: Roll out the 690/700 Bull Put spread to August.  With RUT trading below 600 today, who knows when that will be.

(RUT to 700, STAT!)

Lower Leg Roll Down & Out – Update 7/7

Managed to roll down and out from July 690/700 Bull Put Credit Spread to an August 680/690 Bull Put at a debit of .95 per contract.  With RUT still trading around 600 still today, there is no viable spread above 690 to consider opening a bear call credit spread.  Will just have to wait and see if RUT pushes back up.

July RUT

Decided to move to a July 10 point spread! Yes, only 10 points.  Traditionally I would do 100 points or higher, but I don’t expect the Russell to go up significantly over the next month due to sell in “May & go away” tradition.

I ended up with a July 690/700 – 710/720 Iron Condor.

Net Debit of 1.45 since I rolled down and out from a June Bull Put Credit Spread of 710 / 720 to a July Bull Put Credit Spread of 690/700.

My strategic goal for this month is to reach near max profit of 10.5% on the Bear Call and roll down and out to an August Bull Put.

June RUT

I got manhandled by the pullback.

Current position is a 720/710 June Bull Put spread. Waiting on an opportunity to roll down and out to a 700/690 July Bull Put Credit Spread.

Deathlok April RUT Close

Ended this month the same way as Mantis. Closed out my lower wing (670/680) in case I needed to move my upper wing, sat on the upper wing and let it settle on Friday. Final numbers for this month:

Daily P/L:  4.55%
Month to Date:  41.25%
Year to Date:  13.89%

Of course the money hasn’t posted to my account yet, so I haven’t opened my May IC yet. Hopefully on Monday.