Stock / Symbol: [private_monthly]Russell 2000 / RUT [/private_monthly]
Price at trade post: $817
Option Strategy: iron condor
Max Risk: $896
Max Reward: $104 or 11.6% by Mar 2011 expiration
Profit Range: $710 - $885
Reasoning: We're taking advantage of today's jump in volatility, allowing us a decent yield on this high probability trade.
Trade Details:
[private_monthly]
Buy 2 RUT Mar11 705 Puts
Sell -2 RUT Mar11 710 Puts
Sell -2 RUT Mar11 885 Calls
Buy 2 RUT Mar11 890 Calls
for a net credit of $0.52 per contract
Requirements:
Cost/Proceeds ($104.00)
Option Requirement $1,000.00
Total Requirements $896.00
Estimated Commission $12.95
[/private_monthly]
Chart:
[private_monthly]
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