OPENING: QQQ SEPT 28TH 170/174/2X188/2X190 IRON CONDOR
... for a 1.34/contract credit.
Max Profit: $134/contract
Max Loss: $266/contract
Break Evens: 172.66/188.67
Delta: -5.37
Theta: 1.83
Notes: A slight variation on a delta-based setup to accommodate skew. Instead of selling equally valued delta on both the put and call sides, I'm selling strikes that are equidistant from current price, but doubling up a narrower call side spread. The risk of the setup is attributable to the widest wing, so the call side risk is 2 x a 2-wide (minus the credit received) or 4.00 minus the credit received -- the same as that of the put side (a 4-wide or 4.00 minus the credit received). Going out the standard 45 days until expiration, collecting one-third the width of the widest wing, and looking to manage at 50% max.
Max Profit: $134/contract
Max Loss: $266/contract
Break Evens: 172.66/188.67
Delta: -5.37
Theta: 1.83
Notes: A slight variation on a delta-based setup to accommodate skew. Instead of selling equally valued delta on both the put and call sides, I'm selling strikes that are equidistant from current price, but doubling up a narrower call side spread. The risk of the setup is attributable to the widest wing, so the call side risk is 2 x a 2-wide (minus the credit received) or 4.00 minus the credit received -- the same as that of the put side (a 4-wide or 4.00 minus the credit received). Going out the standard 45 days until expiration, collecting one-third the width of the widest wing, and looking to manage at 50% max.
Trade active:
Rolling the call side down intraexpiry a smidge to the 185/187 for a realized gain on the call side and a .23 credit (.46 in total per setup since it's a two-legger) (delta balancing). Scratch at 1.80.
Trade active:
Rolling the put side up to the 30 delta 176/180 for a .36/contract credit; scratch at 2.16; net delta still slightly bearish.
Trade active:
Ay-yay-yay. Rolling the put side up to the 179/183 for a .27/contract credit; scratch at 2.43.
Trade closed manually:
Out here for 2.58/contract, a .15/contract loser. I'll take it, since I fiddled with the setup far too much.