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NEW CPTI OCTOBER POSITION

HAVING TROUBLE PRINTING?
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NEW CPTI OCTOBER PORTFOLIO POSITIONGood Morning Gang,

This morning's downdraft and increase in volatility has provided an interesting opportunity to open our October cycle with a far (OTM) out of the money position.

With the RUT at 775.53, let's


Sell 20 October RUT 630 puts - RUYVF
Buy 20 October RUT 620 puts - RUYVD
Credit of about $.70 ($1,400)
 


The natural is $.50 and we may be able to negotiate another dime on each side. If not, it's fine to ask for a $.60 credit.

The maintenance is $20,000 and we would have about a 140 point cushion. Based on the delta of the 630 put, we have a 98% chance of success -- if you can believe it.

We have to start somewhere and a 140 point cushion is as good as any.

Good luck, be careful, be creative and don't be greedy.

Mike




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