Good Morning Troops,
We've been sitting patiently by waiting for the market to pull back so we can initiate a new bull put spread position for December.
It looks like the market is going to pull back some more today. The RUT is at about 512 right now.
Let's see if we can get filled on the following:
Sell 20 December RUT 330 puts - RURXF
Buy 20 December RUT 320 puts - RURXDCredit of about $.55 ($1,100)
That would be a cushion of about 180 points. The maintenance would be $20,000.
The credit limit of $.55 might be a bit aggressive. The market might have to come down for that to be filled. You can use this as guidance and start your search for a December trade. The 330 level is over 110 points below the 52 week low set during last month's debacle.
Be creative, but don't be greedy. Make sure you double check the option symbols before placing your trade.