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NEW JULY CPTI POSITION

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NEW CPTI JULY POSITIONGood Morning Everyone,

Since there aren't any reasonable trades left for June, let's turn our attention to July. There are six weeks left before July expiration. You know I'm not thrilled about being exposed to the market for that length of time. However, I'd rather be exposed for an extra week or two than to narrow the trading range.

Take a look at the Russell 200 Index (RUT). This looks like a reasonable play.

Sell 12 RUT July 580 puts
Buy 12 RUT July 570 puts
Credit of about $.80 ($960)

Sell 12 RUT July 670 calls
Buy 12 RUT July 680 calls
Credit of about $.50 ($600)

Total appx. credit and profit potential of $1.30 ($1,560). Maximum profit range of 580 to 670. Maintenance requirement: $12,000. Remember to adjust the number of contracts to the size of your trading accounts.

Good luck and trade smart,

Mike

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