RUT/IUX MARCH 31ST 805/815/1060/1070 IRON CONDOR

With the highest implied volatility out of the four indices ( S&P             , Dow, Nasdaq, and Russell 2000), the Russell 2000, RUT or IUX             (symbology will vary by platform, apparently), offers good premium selling as an alternative to playing its ETF counterpart, IWM             .

Given the value of the underlying and its accompanying options, having more "meat on the bone" allows you to go wider with your iron condor, increase the probability of profit of the setup, and still get something for your trouble (the only way you can do that with IWM             is to increase the number of contracts involved). While I ordinarily place the short put side of my index ETF , SPX             , or RUT iron condor setups at one standard deviation out (84% probability OTM), here I've gone somewhat out to the 94% probability OTM strike for the short put; on the call side, I ordinarily set up the short call at the 75% probability OTM short call, but here I've gone out to the 80% strike.

Here's the setup:

RUT/IUX March 31st 805/815/1060/1070 Iron Condor
Probability of Profit %: 73%
Max Profit: $210/contract
Buying Power Effect: $790/contract

Notes: Look to take the entire setup off at 50% max profit and/or balance the setup's fairly delta neutral disposition by rolling sides in toward current price if you've still got 25 days or more until expiration ... .

I put something like this on last week while waiting for my Feb SPY             IC's to finish out, but neglected to post it here ... .
Comment: The original setup I put on was a March 24th RUT 825/835/1040/105 for a 2.66 credit. I rolled up the short put side today to the March 24th 915/925 for an additional 1.08.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out