Option Investor


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Morning Gang,

It took a few days for the market to come back down off its highs, but it's at a level now where you can get filled on the November position I suggested on Sunday.

Here's a reminder of the position. With the RUT at about 536 today:

Sell 20 November RUT 390 puts - RURWR
Buy 20 November RUT 380 puts - RURWP
Credit of about $.80 ($1,600)

The maintenance is $20,000. The cushion is 146 points (at this writing) and the short strike is about 78 points below the 52 week low.

You can go down another strike or two and take in less premium. Adjust the number of contracts to your risk tolerance and account size. Also, double check the symbols before you place your order.

I know that a lot of you are not mentally ready to get back into the market, but I tossed out this position because it has a high likelihood of success. If you are uncomfortable at all, it's perfectly OK to step back and wait until you're ready. The market will be there. That's the only guarantee I can make these days.

Be careful,


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