I generally don't do setups that are 10 DTE or less unless they involve earnings plays, but figured I'd use one of these short duration iron condors instead of scalping /ES, which tends to involve a lot of screen time.
Here's the setup I put on today at NY open:
SPX Feb 5th 1785/1795/1930/1940 Iron Condor
Probability of Profit: 60%
Max Profit: $385/contract
It's a very nearly delta neutral setup with the short call strike at the expected move for the expiration and the short put strike at the 84% probability/1 standard deviation line.
I will take the whole setup off at 50% max profit and/or wings off separately at near worthless.
As with all setups, I am prepared to roll a tested side out if that occurs (ordinarily for a debit) and sell an oppositional side against for a credit such that I receive a net credit for the sold oppositional side minus the debit for the roll of the tested side. In that case, I'll look to work that rolled out setup to scratch and/or profit ... .
Here's the setup I put on today at NY open:
SPX Feb 5th 1785/1795/1930/1940 Iron Condor
Probability of Profit: 60%
Max Profit: $385/contract
It's a very nearly delta neutral setup with the short call strike at the expected move for the expiration and the short put strike at the 84% probability/1 standard deviation line.
I will take the whole setup off at 50% max profit and/or wings off separately at near worthless.
As with all setups, I am prepared to roll a tested side out if that occurs (ordinarily for a debit) and sell an oppositional side against for a credit such that I receive a net credit for the sold oppositional side minus the debit for the roll of the tested side. In that case, I'll look to work that rolled out setup to scratch and/or profit ... .
Comment:
Of course, SPX has to take off right after I put this on ... . Lol. This is why you always go small. Looks great one minute; not so great the next ... .
Comment:
My alter ego in Forex Factory came up with a better name for these: "The Aggressive Midget" ("Aggressive" because the POP% is lower than usual; "Midget" because of its "short" duration) ... .
Comment:
Covered this for a small profit; I kind of treat these like a "take the money and scalp" ... .