Opened: KRE March 15th 39/44/50/55 Iron Condor
... for a 1.68 credit.
Comments: ETF IV > 35% with 30-day IV at 37.9%.
Collecting 1/3rd the width of the wings of a 5-wide; 1.68 credit on BPE of 3.32; 50.6% ROC at max; 25.3% at 50% max.
It was kind of a toss-up between doing this as an iron fly or as an iron condor due to the size of the underlying, so compromised, going in somewhat aggressively with the short option legs (they're camped out at the 30 delta). This will allow me to adjust the setup somewhat before having to go inverted with the short strangle aspect (now I've jinxed it).
Will generally look to take profit at 50% max; adjust sides on side test.
Comments: ETF IV > 35% with 30-day IV at 37.9%.
Collecting 1/3rd the width of the wings of a 5-wide; 1.68 credit on BPE of 3.32; 50.6% ROC at max; 25.3% at 50% max.
It was kind of a toss-up between doing this as an iron fly or as an iron condor due to the size of the underlying, so compromised, going in somewhat aggressively with the short option legs (they're camped out at the 30 delta). This will allow me to adjust the setup somewhat before having to go inverted with the short strangle aspect (now I've jinxed it).
Will generally look to take profit at 50% max; adjust sides on side test.
Trade active:
Sometimes an adjustment just isn't worth it in dollar and cents terms ... . Here my delta/theta ratio has skewed out to -10.8/2.6, implying I should make an adjustment by rolling up the short put to cut net delta in half. However, rolling the -44P up to the -45P (which would give me +5.94 in delta), would only net me .23 in credit. Rolling it up to the -46 would give me +12.81 (somewhat more than I would need here). Leaving it alone for now.
Trade closed manually:
25% of max in a week ... . I'll money, take, run. Closing for a 1.26 debit here; .42 ($42) profit. 12.7% ROC as a function of BPE for 7 days' "work."