OPENING: IWM DEC 16TH 103/106/121/124 IRON CONDOR
With VIX still "up there," I'm putting on a bit more premium selling setups in broad market instruments.
Metrics:
Probability of Profit: 61%
Max Profit: $104/contract
Max Loss/Buying Power Effect: $201
Break Evens: 105.01/121.99
Notes: I'll look to manage this at 50% max profit. I would also note that this is doubling as a bit of delta hedge for an IWM position I already have on that was beginning to skew delta positive. This setup is slightly delta negative and brings my net delta for my IWM positions to slightly negative (which is the way I generally like things).
Metrics:
Probability of Profit: 61%
Max Profit: $104/contract
Max Loss/Buying Power Effect: $201
Break Evens: 105.01/121.99
Notes: I'll look to manage this at 50% max profit. I would also note that this is doubling as a bit of delta hedge for an IWM position I already have on that was beginning to skew delta positive. This setup is slightly delta negative and brings my net delta for my IWM positions to slightly negative (which is the way I generally like things).
Comment:
As with the other IWM iron condor I have, I'll look to delta balance this setup a bit by rolling the short put spread to the 20 strike (same expiry) tomorrow.
Comment:
Rolling the Dec 16th 103/106 to the Dec 16th 116/119 put spread for a .33 ($33)/contract credit.