2 New Trades

Yesterday (Sept. 11) I sold a OCT 800/810 Bear Call Spread to top-off the upper end of a 630/640/800/810 Iron Condor on the RUT for 60 cents. Total credits received is now 2.1 for a return on $1,000 of 21% till October expiration. I had been trying to sell this for a larger credit throughout the week but eventually bit the bullet and decided if the RUT goes up any significant amount in the next week or so I will sell another one at a higher price. Currently my Theta is at 6.5, delta pretty much 0, and vega at -16. I'm not sure yet how I feel about having such a large (in my opinion) Vega exposure, and will be looking into balancing that when I have some time.

I also placed speculative trade today. Here's a chart of Citigroup over the last 5 years:

In my opinion, this is one of the "stronger" and more diversified banks. Although many would have said that about Bear and Lehman before they collapsed. That's why this is a speculative trade. I purchased a JAN 2010 LEAP 30/40 Vertical Bull Call spread (not sure what the proper name is...) for 90 cents ($90 - only 1 contract). This position will be worth zero if on January 2010 Expiration the stock is below 30. It's max profit potential, $910 (about a 1,000% return) will be reached if the Citigroup is above $40 per share on Jan 2010 Expiration. Currently the stock is at $17.85. I don't think it will more than double by then, but hopefully it will be over $30 by then.