OPENING: SPY JUNE 28TH 271/274/296/299 IC; 274/296 STRANGLE
... for a 1.02/contract credit (the short strangle -- for 3.43).
Metrics (Iron Condor):
Max Profit: $102/contract
Max Loss: $198/contract
Break Evens: 272.98/297.02
Delta/Theta: -3.86/1.61
Notes: A late post, as these were opened on Friday -- the iron condor in a smaller account where buying power is limited; the short strangle in an account where that is less of a concern. I used the quarterlies, since the June monthly was a bit closer in time than I would ordinarily like and wanted to add in some Plain Jane broad market short premium without scrounging around for plays in less liquid underlyings or in the exchange-traded funds that had high implied but in which I already have plays (XOP, SMH, EWZ, XBI). As usual, will look to manage intra-trade on side test with untested side approaching worthless via rolling in of the untested and look to take profit at 50% max. Admittedly, the rank and background implied (24/16) isn't as high as I would like ... .
Metrics (Iron Condor):
Max Profit: $102/contract
Max Loss: $198/contract
Break Evens: 272.98/297.02
Delta/Theta: -3.86/1.61
Notes: A late post, as these were opened on Friday -- the iron condor in a smaller account where buying power is limited; the short strangle in an account where that is less of a concern. I used the quarterlies, since the June monthly was a bit closer in time than I would ordinarily like and wanted to add in some Plain Jane broad market short premium without scrounging around for plays in less liquid underlyings or in the exchange-traded funds that had high implied but in which I already have plays (XOP, SMH, EWZ, XBI). As usual, will look to manage intra-trade on side test with untested side approaching worthless via rolling in of the untested and look to take profit at 50% max. Admittedly, the rank and background implied (24/16) isn't as high as I would like ... .
Trade closed manually:
Taking small profit here on the iron condor: closing for a .75/contract debit (.27/$27 profit per contract) and on the short strangle for 2.86 (.57/$57 profit per contract).