20 RUT 1300/1290 Credit Put spreads 0.60 Credit ($1200)
9 RUT 1490/1500 Credit Call spreads 0.80 Credit ($720)
2/25 IWM Unbalanced Long Strangle. Strike prices 132/150
0.76 debit for each of the 132 strike Puts
0.14 debit for each of the 25 strike Calls.
Total debit paid: $502 )
Net Credit: $1418
Days to Expiration: 42
A RUT Chart for future reference and self-study:
(Click on image to enlarge)
Closed 20 June RUT 1230/1220 Credit Put spreads, 0.10 debit
Original credit was 0.66 per. Net gain of 0.56, which is $1,120 in dollar terms for 20 spreads
Closed 2 June IWM 126 long Puts. 0.12 credit
Original Debit paid was 0.95. Net loss = 0.83. In dollar terms $166 for 2 contracts.
Net-Net the entire Put side of the Elephant resulted in a gain of $954
The entire Elephant is now closed. Combining the Call and the Put side, the total gain was $1,026
We were in the position for 5 weeks and we are done 3 weeks before expiration.
For details about the management of Unbalanced Elephant positions consider an LTOptions.com membership, where there is also material that discusses how to put this type of position in small accounts too.
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