Option Investor
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LET'S DO IT!!

HAVING TROUBLE PRINTING?
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Hi Troops,

Let's make it official. I just did what I said in the previous post. The market has continued down.

You may have to make an adjustment on the new credit spread. We can't do the 730/720 bull put spread because you may already have our other bull put spread using the 730 put. If you don't have the other 740/730 bull put spread then you can sell the 730/720 bull put spread.

Close out the August 770/760 RUT spread for about $3.30 ($6,600)

Sell 30 contracts of a lower August bull put spread - 720/10 for a credit of about $1.10 ($3,300)

Sell 30 contracts of an August bear call spread - perhaps the 840/850 for a credit of about 1.20 ($3,600). You may want to do the 850/860 for a credit of about $.75 ($2,250)

Remember, we also have an initial credit that we took in of $900.

Good luck.

Mike

I'll go into this in more detail in tonight's column.


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