OPENING: XBI MAY 17TH 80/85/98/103 IRON CONDOR
Updated
... for a 1.67/contract credit.
Metrics:
Max Profit: 1.67 ($167)
Max Loss/Buying Power Effect: 3.33 ($333)
Break Evens: 83.33/99.67
Delta: -2.03
Theta: 2.02
Notes: Some nondirectional premium selling here in an exchange-traded fund with high implied (24.8%) relative to the broad market; going 25 delta with the shorts, five-wide with the longs and collecting one-third the width of the wings. Will look to take profit at 50% max.
Metrics:
Max Profit: 1.67 ($167)
Max Loss/Buying Power Effect: 3.33 ($333)
Break Evens: 83.33/99.67
Delta: -2.03
Theta: 2.02
Notes: Some nondirectional premium selling here in an exchange-traded fund with high implied (24.8%) relative to the broad market; going 25 delta with the shorts, five-wide with the longs and collecting one-third the width of the wings. Will look to take profit at 50% max.
Trade active
Rolling the call side down to the 96/101 for a realized gain and .19/contract credit. It's not much, but it cuts net delta in half ... . Scratch at 1.86.Trade active
With the call side approaching worthless and the short put side being tested on this down move, rolled the call side down to the 90/95 immediately at open for a .65/contract credit; scratch at 2.51.Trade active
Rolling down to the 86/89 for a .53/contract credit with a resulting scratch point of 3.04/contract. Because the total credits collected exceed the width of the call side spread (and therefore its max loss), the setup no longer has upside risk and has a downside break even of 81.96..Trade active
Covering here with 18 days to go for a 2.71/contract debit, a small winner of 3.04 - 2.71 or .33/contract.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.