OPENING: IBM JULY 28TH 145/148/160/162.5 IRON CONDOR
... for a 1.10 credit. It announces earnings today after market close.
Metrics:
Probability of Profit: 54%
Max Profit: $110/contract
Max Loss/Buying Power Effect: $190/contract
Break Evens: 146.90/161.10 (Wide of expected move, both sides)
Delta: .37
Theta: 6.08
Notes: The strikes were pesky on the call side. It was either go five-wide or 2 1/2 wide on the call side. I opted for going narrower, as long as I could keep my break evens outside the expected move. Will look to take profit at 50% max.
Metrics:
Probability of Profit: 54%
Max Profit: $110/contract
Max Loss/Buying Power Effect: $190/contract
Break Evens: 146.90/161.10 (Wide of expected move, both sides)
Delta: .37
Theta: 6.08
Notes: The strikes were pesky on the call side. It was either go five-wide or 2 1/2 wide on the call side. I opted for going narrower, as long as I could keep my break evens outside the expected move. Will look to take profit at 50% max.
Trade active:
Covering the call side for a .02 debit. Price is dancing around just south of the 148 short put; I'll take a look at it next week to see what can be done in terms of rolling, etc.
Trade closed manually:
With 4 DTE and a lack of enthusiasm to work this puppy, covering here for a 1.49 db, resulting in a small loser (1.10 - .02 - 1.49 = .41 ($41)).