Bull Put Trade On RUT

Here is one of my trades on RUT. I sold a Bull Put 1380/1375 21 December expiration. Currently the RUT is at 1549, with a very strong support at 1460. I am thinking it will not drop below the support line by the time it expires on 21 December.

I am expecting the RUT to go down a little bit though, it kind of looks similar to January to February selloff at the beginning of the year. Selloff stopped at 1460, rose to 1560, then went down again to 1506, and then rallied to 1604. It fell to 1490 in the middle of March, but I am expecting to be out of the trade if it follows the same route.

I’ve setup a stop-loss at the 1380 level, so if it goes down and touches it, the trade is bought back at a loss. If however it stays above that level then it’s not a loss.

Here is the Think or Swim screen shot.

ruttrade

 

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