OPENING: IWM DEC 9TH 108/111/123.5/126.5 IRON CONDOR

2 months ago
I slapped this one on rather hastily on Friday with the FBI "reopening-Clinton-email-investigation" volatility pop we had on Friday.

Unfortunately, I didn't get what I usually look for in these setups -- a credit of at least 1/3rd the width of the wings (I got it filled for .89 ($89) per contract), but could have done slightly better if I'd not been in such a hurry (looks like you could get .92 ($92) at the mid at the moment) (63% probability of profit; $92/contract max profit; $208/contract max loss/buying power effect; break evens at 110.08/124.42; delta -5.87).

I'll look to manage it at 50% max profit.
2 months ago
Comment: Will look to roll up the short put side tomorrow to the 20 delta strike (or as near as I can get) in the same expiry to delta balance.
2 months ago
Comment: Rolling the Dec 9th 108/111 put spread to the Dec 9th 116.5/119.5 for a .28 ($28)/contract credit.
interesting. check out the last theotrade video on youtube by Don. he makes a case with the big move in vvix options that volatility could explode soon. everyone seems to think or fear a big move down, but...soooo many puts right now
NaughtyPines FractalTrader
2 months ago
As usual, it's a potentially "crowded trade." It's best to go in "small" contract-wise on any pop and keep dry powder aside for more if "this isn't the pop you're looking for."
FractalTrader PRO NaughtyPines
2 months ago
here's another interesting chart, because...IWM has been fun to play lately
. down...sideways....down...sideways...down (past big big support). right away one assumes sideways to continue the pattern, but that's usually when you get a nice kick in the....
NaughtyPines FractalTrader
2 months ago
There is a direct correlation between "fun to play" and potential "face ripping." IWM/RUT implied volatility is higher than SPY/SPX here, which is why I'm selling premium in IWM/RUT. That higher implied volatility can also make for a bumpy ride in a nondirectionally biased trade, however, so I guess it might be wise for me to "fasten my seatbelt." The short put side of my setup is at 108 support ... .
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