Stock / Symbol: Russell 2000 / RUT
Option Strategy: bear call spread
Trade entry date: Jun 19
Price at trade post: $788.49
Price at this post: $790
Current Position:[private_monthly]
Short -1 RUT Jul12 840 call
Long 1 RUT Jul12 850 call
for a net credit of $0.65 per contract
Reasoning: For those of you, including us, who did not get filled on yesterday's suggested adjustment of buying back the bear call spread and opening a bull put spread, we suggest closing the call spread now to avoid upside losses. If you did get filled on yesterday's suggested adjustment, just be sure to adhere to our suggested downside stop.
Closing Trade Details:
BTC -1 RUT Jul12 840 call
STC 1 RUT Jul12 850 call
for a max net debit of $0.75 per contract (GTC, limit order).
Max Risk: $935
Max Reward: $65 or 6.9% at/under $840 by Jul 20
Profit / Loss upon fill: ($10) pre-commission
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