- This topic has 2 replies, 1 voice, and was last updated 6 years, 8 months ago by .
Viewing 3 posts - 1 through 3 (of 3 total)
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.
Become a Great Options Trader
Home › Forums › Closed Trades › [Closed +36%] Reverting Fly in RUT
Setup: Reverting Fly Income Trade
Price: 1250
Description:
The Russell has run up enough where we can start making bets on reversion with a downside bias.
This is part 1 of 3 butterflies to put on:
IncomeLab Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
BTO | RUT | 21 Oct 16 | 1280 | Put |
STO 2x | RUT | 21 Oct 16 | 1230 | Put |
BTO | RUT | 21 Oct 16 | 1180 | Put |
Total Debit: | 11 |
As RUT continues to move higher, we’ll add to the trade. Planned add points are 1280 and 1310, although as time goes on adjustments can be made to reduce theta risk.
The pullback was a gift here and we have surpassed our profit target. I’m OK with trying to “milk” the trade a little longer but I’m going ahead to make the call to close.
IncomeLab Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
STC | RUT | 21 Oct 16 | 1280 | Put |
BTC 2x | RUT | 21 Oct 16 | 1230 | Put |
STC | RUT | 21 Oct 16 | 1180 | Put |
Total Credit: | 15.00 |
Roc: 36%