TRADE IDEA: IWM 102/105/114/117 IRON CONDOR
Putting some index ETF premium selling action on in the May expiry in IWM, the index ETF with the highest IV.
Metrics:
Probability of Profit: 55%
Max Profit: $97/contract
Buying Power Effect: $203/contract
Notes: This is one of those probabilistic iron condors I referenced in the post below, with the strikes being selected based on their probability of expiring out of the money percentage. It's not what I usually like to go with in terms of probability of profit (70%+ is ideal), but I'm looking to eek out one-third the width of the wings in credit here ... .
Metrics:
Probability of Profit: 55%
Max Profit: $97/contract
Buying Power Effect: $203/contract
Notes: This is one of those probabilistic iron condors I referenced in the post below, with the strikes being selected based on their probability of expiring out of the money percentage. It's not what I usually like to go with in terms of probability of profit (70%+ is ideal), but I'm looking to eek out one-third the width of the wings in credit here ... .
Comment:
No fill, which is fine. With VIX dropping below 15 and with IWM's vol dropping along with it, too, I'll look to put on a similar setup if we get an uptick in volatility generally. Otherwise, it's off to earnings season.
