Monday, 18 May 2009

RUT PUT Credit Spreads

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RUT June options contract have 31 days to expiry, hence plenty of time value in them. Based on the technical situation I placed to the following order:

Sell to open 380 June puts
Buy to open 370 June Puts
For credit of 0.42 per contract

I will Wait to open call positions if the RUT rallies.

Technically RUT has had a big rally and will possibly retrace a bit. I've placed my orders below the low of the 23% retracement area, which is also below the 20MA.

If RUT reaches 539 I will open the call positions.

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