Hey Traders,
I'm mostly testing out neutral strategies with small positions to add to a separate portfolio dedicated to market neutral strategies.
The position is as follows.
Option Strategy: Iron Condor
Position Expiration: 21 APR 17 (Red Vertical Line / 10 Days to Exp -1.05% .)
Total Legs: 4
Total Contracts held: 16
Position Breakeven Points: $63.74 / $71.26
Upper Leg:
- Short (4) $71 Strike Calls
- Long (4) $71.5 Strike Calls
Lower Leg:
- Short (4) $64 Strike Puts
- Long (4) $63.5 Strike Puts
Max Loss: $124.00
Max Win: $74.00
ROI: 59.67%
Trade Management: Holding to expiration for premium / max loss. Reason for such management is the exceptional return on capital invested along with the fact that the expiration crosses over earnings for which I don't expect a wild move. In the small case there is a wild move then loss is mitigated and capped at a set rate that I'm willing to accept.
I'm mostly testing out neutral strategies with small positions to add to a separate portfolio dedicated to market neutral strategies.
The position is as follows.
Option Strategy: Iron Condor
Position Expiration: 21 APR 17 (Red Vertical Line / 10 Days to Exp -1.05% .)
Total Legs: 4
Total Contracts held: 16
Position Breakeven Points: $63.74 / $71.26
Upper Leg:
- Short (4) $71 Strike Calls
- Long (4) $71.5 Strike Calls
Lower Leg:
- Short (4) $64 Strike Puts
- Long (4) $63.5 Strike Puts
Max Loss: $124.00
Max Win: $74.00
ROI: 59.67%
Trade Management: Holding to expiration for premium / max loss. Reason for such management is the exceptional return on capital invested along with the fact that the expiration crosses over earnings for which I don't expect a wild move. In the small case there is a wild move then loss is mitigated and capped at a set rate that I'm willing to accept.
Trade closed: target reached:
Ended up with a successful trade, full premium collected.
Some notes: I could've done much better execution on entering the trade as the trader @Benji mentioned below, I noticed I could've made the upper leg of the iron condor a bit wider. I noticed this as price traded up near to the $71 strike (breakeven) of the upper range. Noted in my trading journal. Decent trade, hope you all enjoy your weekends!
Some notes: I could've done much better execution on entering the trade as the trader @Benji mentioned below, I noticed I could've made the upper leg of the iron condor a bit wider. I noticed this as price traded up near to the $71 strike (breakeven) of the upper range. Noted in my trading journal. Decent trade, hope you all enjoy your weekends!