Instead of selling a short strangle, it's better to buy some OTM contracts at next to nothing to make the trade efficient in terms of buying power. The breakeven points on the trade aren't GREAT, but, the trade is pretty low risk. If it works, great and if not, hey, we'll get 'em next time.
This nearly ATM July 5th IC on McDonald's is technically driven. For the past 10 trading days, MCD's open and closes have both stayed within the parallel channel range of 203.73 and 206.16. With a great risk/reward ratio, we are entering into a short iron condor on the July 5th contracts, 8 trading days away, with a maximum profit of 147 with a mere, limited max...
AMD is moving sideways had a very powerful move recently and now it's moving sideways could not break it's previous high so now it will do a congestion test sideways and may move higher. Watching to see if it breaks channel if it does may put on an iron condor or a call spread(maybe)
... for a 1.78/contract credit. Metrics: Max Profit: $178/contract Max Loss: $328/contract Break Evens: 1418.25/1601.75 Delta/Theta: -.73/2.21 Notes: Squeezing in a little more RUT in the July cycle and collecting greater than one-third the width of the wings. Will look to roll in untested side on approaching worthless or on side test and take profit at 50%...
... for a 1.08/contract credit. Metrics: Max Profit: $108/contract Max Loss: $192/contract Break Evens: 159.92/183.08 Delta/Theta: -3.38/1.63 Notes: Layering on some directionally neutral in the broad market exchange-traded fund with the highest implied ... .
... for a 2.90 credit. Metrics: Max Profit: $290/contract Max Loss: $710/contract Break Evens: 1357.10/1642.90 Delta/Theta: -1.01/2.20 Notes: A wider, longer-dated setup camped out at the 16 delta strikes for the expiry for the (ordinarily) sleepy summer months. I'm collecting a little less than my usual one-third the width of the strikes, but wanted more...
... for a 1.75/contract credit. Metrics: Max Profit: $175/contract ($88) Max Loss: $325/contract Break Evens: 148.25/216.75 Delta/Theta: -.81/2.11 Notes: Back into TSLA (54/76) (high rank/high implied). Sticking with the July monthly and getting greater than one-third the width of the wings in credit. Will look to roll in untested on approaching worthless or...
... for a 1.75/contract credit. Metrics: Max Profit: $175/contract Max Loss/Buying Power Effect: $225/contract Break Evens: 143.25/226.75 Delta/Theta: -1.53/1.81 Notes: With the highest rank/implied on the board (67/83), dipping my toe into TSLA, although I'll probably regret it later. Markets are wider that I'd like ... . Will look to roll in on side...
... for a .98 credit. Metrics: Max Profit: $98/contract Max Loss: $202/contract Break Evens: 167.02/192.98 Delta/Theta: -3.59/1.24 Notes: Keeping things simple ... . Rotating into broad market in the July cycle and selling premium in the underlying with the highest background implied out of SPY, IWM, QQQ, and DIA. Collecting nearly one-third the width of the...
balancing out portfolio with a neutral position iron condor on EFA with June 28 exp took in credit of .26
... 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...
AAPL 21-Jun-19 Short Iron Condor 30-Day IV: 30.0 -2.2 IV Pct Rank: 73% Elevated Long 1 Call: 200 Strike @ $0.43 Short 1 Call: 195 Strike @ $0.92 Long 1 Put: 160 Strike @ $1.12 Short 1 Put: 165 Strike @ $1.74 Credit: $1.11 AAPL 21-Jun-19 Open Interest Last 30 Days | Puts: 50% | Calls: 50%
Since IV is high on ROKU because of recent earnings. I will go for an iron condor on ROKU 65/70/100/105 EXP July 19 $150/350 Profit/Risk $100 real profit target and $200 max loss. High probability trade, this is a journal entry and not trade advice.
... for a 1.81/contract credit. Metrics: Max Profit: $181/contract Max Loss: $319/contract Break Evens: 1443.19/1626.81 Delta/Theta: -.81/1.82 Notes: Been a while since I've done any RUT. Collecting more than one-third the width of the wings with the shorties camped out around the 20 delta strike. Will roll the untested side on approaching worthless intratrade...
TSLA looks to be trending lower as it continues toward its destination I plan to capture some profits using an iron condor. IV is really high at around 50 180/185/240/245 $150/350 Profit/Risk June 21 EXP Profit Target to be expected by June 10-14 Profit Target is $80 max loss is $160 This is a journal entry and not trading advice.
... for a 1.04/contract credit. With implied volatility fairly low across the board, going small, defined in the exchange-traded fund with the highest background implied volatility on the board (30.9%) to keep powder dry for something sexier to come along ... . Shorts nearest the 25 delta strike, longs nearest the 10 with slightly more than one-third the width...
... for a 1.04/contract credit. Metrics: Max Profit: $104/contract Max Loss/Buying Power Effect: $196/contract Break Evens: 76.96/93.04 Delta/Theta: -2.95/1.41 Notes: Back into biotech, collecting one-third the width of the wings. Will look to manage the trade at side approaching worthless (i.e., rolling toward the tested side) with a profit target of 50% max.
EWZ 07-Jun-19 Short Iron Condor 30-Day IV: 32.2 +1.2 IV Pct Rank: 50% Moderate Long 1 Call: 42 Strike @ $0.80 Short 1 Call: 41.5 Strike @ $1.00 Long 1 Put: 39 Strike @ $0.88 Short 1 Put: 39.5 Strike @ $1.04 Credit: $0.37 EWZ 07-Jun-19 Open Interest Last 30 Days | Puts: 73% | Calls: 27%