IWM Straddle Update, Profit of 112%.

Here is an update of the IWM 67-68 straddle. This straddle was played prior to the wall street bailout vote.

The IWM 68 calls are currently trading at $0.10, for a nearly 100% loss.

The IWM 67 puts are now trading at $8.40 (traded as high at $9), and were bought for $2, i.e., sold at 4.2X the purchase price.

Overall the straddle returned a profit of 112% in 4-5 days.

IWM is great for straddles because it is very liquid and the bid-ask spread is very low.

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UPDATE Oct 8:

Bought IWM 53 puts for $1.34 and 58 calls for $1.45, total cost: $2.79