Looks like we might have an August trade -- or at least half of one -- on the RUT. RUT closed today at 667.65.
Since the market looks pretty strong here, let's put on a bull put spread far out of the money and see what happens. We'll have a 47.35 point cushion with some decent support on the way down.
Sell 12 August RUT 620 puts
Buy 12 August RUT 610 puts
Credit of about $.55 ($660)
Our net credit and profit potential is about $660. Maintenance is $12,000. As most CPTI students know, the market makers at the RUT can be difficult to bargain with. We'll see what kind of attitude they have tomorrow.
We'll keep our eyes open for an opportunity to put on the bear call spread to complete our Iron Condor. If we do, that's great. If we don't, that's fine too.
Take care and trade smart!