New Trade Entry: RUT Put Credit Spread for January 19; order filled.
Order executed for this new "test kitchen" position:
SOLD RUT January 19 1350 Put, 9.40 credit.
BOUGHT RUT January 19 1320 Put, 6.80 debit.
Order was filled as a "Vertical" for $2.60 net credit (all four legs).
Margin/Risk is calculated by the width of the wings ($3,000), less credit received.
Margin/Risk for this week's trade: $2,740.
The trade is left in play to work until:
1) If the loss reaches $250, the position is closed.
2) When the next monthly cycle is at the 65 days to expiration window, the position is closed, which would be approximately December 20
Below is the risk graph of this week's position as shown on my broker's platform:
RUT January 19 Put Credit Spread:
Below is the RUT chart showing the short strike:
RUT 6 month chart
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,