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NEW AUGUST CPTI PORTFOLIO POSITION

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Hello CPTIers,

It's Friday -- and you know I like to trade on Fridays. So, let's see if we can test the waters with our first August trade.

With the RUT at 844.74, let's:

Sell 20 August RUT 740 puts - RUTTH
Buy 20 August RUT 730 puts - RUTTF
Credit of about $.45 ($900)
 


As I write this, the natural for the bull put spread is $.35. Normally, the RUT is pretty tough to deal with as far as negotiating premium, but we should be able to get a little. We may have to wait for the market to come down later today to get the $.45. You may decide to settle for $.40 -- which is perfectly OK.

The cushion is over 100 points. The maintenance is $20,000.

Be careful. Double check the strikes and option symbols before placing the trade.

Good luck and trade smart!

Mike



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