OPENING: QQQ JULY 19TH 165/168/192/195 IRON CONDOR
... for a .98 credit.
Metrics:
Max Profit: $98/contract
Max Loss: $202/contract
Break Evens: 167.02/192.98
Delta/Theta: -3.59/1.24
Notes: Keeping things simple ... . Rotating into broad market in the July cycle and selling premium in the underlying with the highest background implied out of SPY, IWM, QQQ, and DIA. Collecting nearly one-third the width of the wings and will look to manage intratrade by rolling the untested side toward current price on side approaching worthless with a profit target of 50% of max (one-half of .98 or .49/$49).
Would've gone with a weekly nearest 45 days 'til expiration, but only the June quarterly (38 days) and the July monthly (59 days) were available, so went with the monthly.
Metrics:
Max Profit: $98/contract
Max Loss: $202/contract
Break Evens: 167.02/192.98
Delta/Theta: -3.59/1.24
Notes: Keeping things simple ... . Rotating into broad market in the July cycle and selling premium in the underlying with the highest background implied out of SPY, IWM, QQQ, and DIA. Collecting nearly one-third the width of the wings and will look to manage intratrade by rolling the untested side toward current price on side approaching worthless with a profit target of 50% of max (one-half of .98 or .49/$49).
Would've gone with a weekly nearest 45 days 'til expiration, but only the June quarterly (38 days) and the July monthly (59 days) were available, so went with the monthly.
Trade active:
Rolling the 192/195 short call vertical to the 183/186 on approaching worthless for a .56/contract credit; scratch at 1.54.
Trade active:
Rolling the put side up on side test to delta balance to the 172/175 for a .21 credit; scratch at 1.75.
Trade active:
Rolling the put side up to delta balance to the 177/180 for a .22 credit; scratch at 1.97.
Trade closed manually:
Closing here for 2.74, a .77 loser. As with my other July QQQ trade, looked at closing the short put side, rolling the short call side out, and selling a new put side against, but it was not net credit productive, so taking the loss, moving on.