OPEN: RUT Oct Iron Condor

Here are some new positions I am back in again as they are more conservative. Please size these small in your portfolios to hedge against the volatility of the financial crisis.

Check out today's news on WAMU. JP Morgan has purchased Washington Mutual to rescue the financial markets yet again:
http://biz.yahoo.com/ap/080926/washington_mutual_future.html

RUT Oct Iron condor opened 9/23/08:
Oct 630/620 bull put spread for $1.00 credit
Oct 800/810 bear call spread for $0.55 credit

$1.55 credit/ ($10 spread - $1.55 credit) risk= 18.3% ROI potential with just the Iron Condor alone

I also added for extra protection onto this condor 15 long Oct 600 puts for $3.00 debit and 15 long Oct 820 calls for $0.65 debit. So now my new profit/risk calculation is as follows:

1.55/(10 margin between strikes + 3.00 debit + 0.65 debit)-1.55 credit= 12.8% ROI potential

Here's what it does to my profit graph. Notice how both the bottom and top (left and right of chart) swing upward so no matter which direction the market takes today, I will profit if it moves dramatically. The white curve represents my potential profit today. The green line represents what the profit would be at expiration.