OPEN: RUT JUN 630/640/800/810 BMIC

I opened another position on RUT. RUT JUN 630/640Put – 800/810 Call BMIC for a credit of +1.35 with 45 days to expiry.

The delta of the short 640 PUT is .09 and the delta of the short 800 call is .08. The RUT is currently approaching a strong resistance level @ 735. It will be good if RUT will respect this resistance level and stay range bound for a while. Should it break this resistance level, I will be looking at making some adjustments on the position.

15/5/08. – Moved the 630/640P leg up to 650/660P to harvest more premium. Initial credit for the 630/640P was +0.40. Bought it back for -0.50 and sold the 650/660P for +0.65. The new net credit is now +0.55. The cost basis of the new 650/660/800/810 IC is +0.72. It is currently trading at +1.40.

OPEN: RUT JUN 600/610/790/800 BMIC

I opened RUT JUN 600/610Put – 790/800Call BMIC for a credit of $1.45 with 52 days to expiry.

The delta of the short 610 PUT is .07 and the delta of the short 790 call is .09. I opened this position after going through Dan Sheridan’s Iron Condor strategy. The shorts are about 8-9 strikes OTM.

15/5/08. – I adjusted the 600/610P to 650/660P to harvest more premium. Initial credit for the 600/610P was +0.35. Bought it back for -0.13 and sold the 650/660P for +0.65. The new net credit for the Put leg is +0.87.

I also adjusted the 790/800C to 800/810C. Initial credit for the 790/800C was +0.55. Bought it back for -1.08 and sold the 800/810C for +0.62. The new net credit for the Call leg is +0.09

The initial credit for the 600/610/790/800 IC was +0.90. The credit for the 650/600/800/810 IC is +0.98. Not much gain in the premium, however, the stock price at 736.07 was getting close to the 790/800C leg.