Stock / Symbol: Russell 2000 / RUT
Option Strategy: bull put spread
Trade entry date: Jun 1
Price at trade entry: $738.66
Price at trade close: $762.34
Position Details:
Short -1 RUT Jun12 680 put
Long 1 RUT Jun12 670 put
for a net credit of $0.80 per contract
Analysis: With RUT closing well over 680 yesterday, we were able to allow our position to expire worthless for the trade's full yield potential of 8.7% in two weeks time.
Max Risk: $920
Max Reward: $80 or 8.7% between $0 and $680 by Jun 14
Profit Range: $0 to $679.20 by Jun 14
Suggested Downside stop: @ $699
Realized profit / loss: $80 or 8.7% (pre-commission)
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