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New CPTI Position

HAVING TROUBLE PRINTING?
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- OctoberWell, there isn't a lot left that's safe for the September cycle, but I'll keep my eyes open.

In the meantime, let's try an experiment. We're going to expose ourselves to the market a little longer and expand our maximum profit range as a trade-off.

With the RUT at about 708, lets:

Sell 20 October RUT 610 puts - RUYVB
Buy 20 October RUT 600 puts - RUYVT
Credit of about $.50 ($1,000)

Sell 15 October RUT 790 calls - RUTJR
Buy 15 October RUT 800 calls - RUTJS
Credit of about $.60 ($900)

Total net credit and profit potential of $1.10 ($1,900). Maximum profit range of 610 to 790 -- 180 points!! Maintenance is $20,000 -- IF you have the right broker.

Notice how I'm using only 15 contracts for the bear call spread. Why? Because I wanted a little less exposure because it looks like the market might be moving up in the near term.

ZERO-PLUS Strategy
I'm going to use this same Iron Condor for our Zero Plus strategy. The only difference is that I'm going to trade more contracts -- actually double what were trading in the CPTI portfoliol So, we're going to:

Sell 40 October RUT 610 puts - RUYVB
Buy 40 October RUT 600 puts - RUYVT
Credit of about $.50 ($2,000)

Sell 30 October RUT 790 calls - RUTJR
Buy 30 October RUT 800 calls - RUTJS
Credit of about $.60 ($1,800)

Total net credit and profit potential of $1.10 ($3,800). Maximum profit range of 610 to 790 -- 180 points!! Maintenance is $40,000 -- IF you have the right broker.

Remember, adjust the contract size to your comfort level. Use the suggested trade as guidance. Don't get greedy and always double check the option symbols before placing your order.

Good luck and trade smart,

Mike

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