Option Investor


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NEW Good Morning,

You guys know how I like to trade on Fridays. With the market coming down this morning, let's put on this RUT bull put spread for our Zero Plus Ongoing position.

For those of you who may not have put on the RUT position from last week, this is an opportunity for you to get in if you so choose.

With the RUT at about 721, let's:

Sell 30 July RUT 610 puts - RUYSB
Buy 30 July RUT 600 puts - RUYST
Credit of about $.70 ($2,100)

You may only be able to get $.65 - which is just fine. Also, note that for the Zero Plus strategy I'm using 30 contracts. Adjust your contract size to your personal account size and risk tolerance. Those of you who are even more conservative may want to look at the 600/590 as a possibility. Who knows? The market may come down even further and other lower opportunities may present themselves.

Cushion is about 111 (at this writing). Maintenance is $30,000.

Be careful, check the option symbols, and don't get greedy.


P.S. Have a great holiday!!

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