OPENING: RUT SEPT 20TH 1330/1340/1680/1690 IRON CONDOR
... for a 1.64/contract credit.
Metrics:
Max Profit: $164/contract
Max Loss: $836/contract
Break Evens: 1338.36/1681.64
Delta/Theta: -.70/2.20
Notes: Granted, this is not a very TT setup, which ordinarily looks to collect one-third the width of the strikes in credit in the expiry nearest 45 days 'til expiration, which generally requires selling the 20-30 delta strikes. As always, there is a trade-off: going wider gives you more room to be wrong and therefore gives you a higher probability of profit (it's 77% here). However, less credit collected means max loss is greater on setup.
Still, a potential 19.6% return on capital (assuming max profit) over a 90-day period is nothing to frown at nor is 9.8% at 50% max, which is what I'll shoot for here.
Metrics:
Max Profit: $164/contract
Max Loss: $836/contract
Break Evens: 1338.36/1681.64
Delta/Theta: -.70/2.20
Notes: Granted, this is not a very TT setup, which ordinarily looks to collect one-third the width of the strikes in credit in the expiry nearest 45 days 'til expiration, which generally requires selling the 20-30 delta strikes. As always, there is a trade-off: going wider gives you more room to be wrong and therefore gives you a higher probability of profit (it's 77% here). However, less credit collected means max loss is greater on setup.
Still, a potential 19.6% return on capital (assuming max profit) over a 90-day period is nothing to frown at nor is 9.8% at 50% max, which is what I'll shoot for here.
Trade closed manually:
Closing here for a 1.09 debit; .55 ($55) profit, 6.6% ROC. Will look to re-up in the October cycle once the July expiry falls off.