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We’re going to put on an EIP trade in 31OCT expiration with about 50 days to expiration.
We’re using tiered entry for this strategy.Tier 1. 1650/1700/1730 Put butterfly
Tier 2. 1670/1720/1750 Put butterfly (RUT trading above 1730)
Tier 3. TBDWe’re going to manage downside risk WHEN/IF RUT trades down to 1670.
Risk Profile:
NOTE: This trade fully scaled will require about 5K of margin per 1 lot.
Planned capital: $10,000
Profit Target: 15% of PC
MAL: 20% of PC
Order Ticket Type Asset Duration Strike C/P BTO RUT 31OCT 18 1730 Put STO X2 RUT 31OCT 18 1700 Put BTO RUT 31OCT 18 1650 Put Total Debit: 0.40 We’re 15 days in this trade. RUT moved from 1720 to 1703.
We’re going to remove some of the downside risk by rolling 1650 put up 10 points.
Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 31OCT 1660 Put Sell To Close RUT 31OCT 1650 Put Total Debit: 1.70 Risk Profile:
We’re going to lock this trade in with 33 days to expiration
Order Ticket Type Asset Duration Strike C/P STC RUT 02NOV 18 1730 Put BTC X2 RUT 02NOV 18 1700 Put STC RUT 02NOV 18 1660 Put Total Credit: 4.30 Risk Profile:
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