The market still looks strong, so we try to keep ourselves out of harm's way with a bull put spread on the RUT.
With the RUT trading at about 685.
Sell 12 September RUT 630 puts
Buy 12 September RUT 620 puts
Credit of about $.85 ($1,020)
Cushion is about 55 points with a lot of support levels above the short strike. Maintenance is $12,000.
Remember to adjust the number of contracts to your account size.
Take care and trade smart.
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