RUT 18 AUG EIP (573)

IncomeLab Forum Forums Income Lab RUT 18 AUG EIP (573)

This topic contains 2 replies, has 1 voice, and was last updated by  Igor 1 year, 11 months ago.

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  • #8108

    Igor
    Keymaster

    RUT at 1404
    RVX at 14.51

    We’re going to put on an income strategy (EIP) in RUT with 59 days to expiration. We’re going to scale into this trade in 1/3s.

    Tier1: 1330/1380/1410 put butterfly
    Tier2: 1350/1400/1430 put butterfly (with RUT above 1410)
    Tier3: 1370/1420/1450 put butterfly (with RUT above 1430)

    We’re:
    Buying (1) 1330 put
    Selling (2) 1380 puts
    Buying (1) 1410 put

    IncomeLab Order Ticket
    Type Asset Duration Strike C/P
    BTO RUT 18 AUG 17 1410 Put
    STO RUT 18 AUG 17 1380 Put
    STO RUT 18 AUG 17 1380 Put
    BTO RUT 18 AUG 17 1330 Put
    Total Debit: $0.80-$1.00

    P/L graph:

    #8187

    Igor
    Keymaster

    We’re going to add Tier 2 put butterfly, 20 points above Tier 1:

    We’re:
    Buying (1) 1350 put
    Selling (2) 1400 puts
    Buying (1) 1430 put

    IncomeLab Order Ticket
    Type Asset Duration Strike C/P
    BTO RUT 18 AUG 17 1430 Put
    STO RUT 18 AUG 17 1400 Put
    STO RUT 18 AUG 17 1400 Put
    BTO RUT 18 AUG 17 1350 Put
    Total Debit: $1.00

    P/L graph:

    #8257

    Igor
    Keymaster

    We’re going to add Tier 3 put butterfly, 20 points above Tier 2

    We’re going to:

    Buying (1) 1370 put
    Selling (2) 1420 puts
    Buying (1) 1450 put

    IncomeLab Order Ticket
    Type Asset Duration Strike C/P
    BTO RUT 18 AUG 17 1450 Put
    STO 2x RUT 18 AUG 17 1420 Put
    BTO RUT 18 AUG 17 1370 Put
    Total Debit: $4.20

    P/L graph:

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