[Opening May Iron Condor on Russell 2000 (RUT)]
Dear Member:
As the Russell 2000 (RUT) continues to channel between about 640 and 730, I am placing an order to open a May expiration iron condor for a credit limit of $4.30. If filled, the risk on this $10 spread would be $5.70 and the potential return on risk for this trade is 75% before commission if held until expiration in 35 days, the index stays between 640 and 730, and I make no adjustments.
The order I am placing is to do the following simultaneously for a credit of $4.30:
Buy to open May 740 calls (RUTEH)
Sell to open May 730 calls (RUTEF)
Sell to open May 640 puts (RUYQH)
Buy to open May 630 puts (RUYQF)
DISCLOSURE: At the time of publication, I hold an April expiration condor on RUT. I have no May options on RUT at publication.
Sincerely,
Bill Kraft
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