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Ironcondor

OPENING: XOP DEC 21ST 28/31/38/41 IRON CONDOR... for an .83/contract credit. Metrics: Max Profit: .83 ($83)/contract Max Loss/Buying Power Effect: 2.17 ($217)/contract Break Evens: 30.17/38.83 Delta: -.55 Theta: 1.73 Notes: An adjustment trade, primarily to add some additional extrinsic value to my XOP core position with XOP rank/implied still being high (100/42), as well as some short delta (it was shorter when I put it on, but price has continued to erode). I didn't quite collect one-third the width, primarily because I have to "squeeze" it in amongst the various spreads I already have on in the December expiry. As with my SPY core position, I'll look to mix and match profitable short put side with profitable short call side as we run into expiry and/or take the entirety of the position off in profit.
AMEX:XOP
by NaughtyPines
CLOSING: XOP 30/33/41/44 IRON CONDOR... for a .72/contract debit (.38 profit/contract; 34.5% max). Notes: As with my SPY core position, I'm mixing and matching profitable short put side with short call side of oppositional setups that I put on over time to take off some risk, book some profit, and (where possible) to get a bit of delta adjustment where I need it. (Here, I pick up a smidge of needed long delta by closing this out, since price of the underlying has moved to the call side of the pairing). This also has the side benefit of allowing me to recenter a setup in the underlying if I want to and/or frees up buying power to make an adjustment trade if necessary.
AMEX:XOP
by NaughtyPines
CLOSING: SPY DEC 21ST 243/247/286/289 IRON CONDOR... for a .93/contract debit (.36 profit/contract). Comments: Mixing and matching profitable put side with profitable call side of a number of iron condors I've layered on over the past several weeks. I'm not getting much out of this, since I was looking for between .50 and .60/contract profit per "pair.". However, with elections around the corner, I'm just taking off a little risk, as well as a smidge of short delta that was in this particular pairing.
AMEX:SPY
by NaughtyPines
OPENING: AMD 17/20/27.5/30.5 IRON CONDOR... for a 1.06/contract credit. Metrics: Max Profit: $106/contract Max Loss/Buying Power Effect: $194/contract Break Evens: 18.94/28.56 (wide of expected move) Delta: -1.18 Theta: 2.97 Notes: High rank/implied at 85/87 and announcing earnings after market close. Looking for an inzee outzee quickee dirtee, hopefully for 50% max. Two other naked possibilities: the November 16th 23.5 short straddle (paying 4.61; 1.15 profit at 25% max) or the November 16th 20/27.5 short strangle (paying 1.81; .90 profit at 50% max).
NASDAQ:AMD
by NaughtyPines
CLOSING: SPY DEC 21ST 252/256/292/296 IRON CONDOR... for a .96/contract debit (.40/$40 profit per contract). Notes: Mixing and matching profitable put side with profitable call side of iron condors I've put on over the past few weeks, while freeing up buying power for further adjustments or other trades without affecting my SPY net delta much. The scratch point of the entire SPY position was 5.87/contract and is now 5.87 (credit) minus .96 (debit) or 4.91 (credit) with the net delta of the December SPY at -1.94/contract.
AMEX:SPY
by NaughtyPines
OPENING: SPY DEC 21ST 253/257/290/294 IRON CONDOR... for a 1.30/contract credit. Layering on some additional slightly short delta SPY to my existing December setup to bring the entire position back to neutral. Notes: In delta balancing existing setups, you have several basic options: (a) roll the untested side toward current price on significant decrease in value to reduce net position delta;* (b) add units to the side on which delta is needed (i.e., short puts/short put verticals if long delta is required; short calls/short call verticals if short delta is required); or (c) layer on a slightly skewed oppositional setup (short strangle/iron condor, short straddle/iron fly) that has the delta you need to balance the setup out or reduce directional delta. Here, I'm opting for an oppositional setup, since it brings in more credit than just adding units to one side. After layering on this additional position to what I've already got on out in December (see Post Below), I proceed to treat both trades as a single position for scratch point/take profit purposes: the scratch point of the original SPY iron condor was 1.94; with this position's credit of 1.30, the scratch point for the entire ball of wax is 3.24. * -- I tend to roll at 50% max for the side and attempt to reduce position net delta by at least half.
AMEX:SPY
by NaughtyPines
TRADE IDEA: IWM NOV 16TH 153/157/2X170/2X172 IRON CONDORAdding some nondirectional broad market in the November cycle on this uptick in volatility (IWM 30-day currently at 18.998%). QQQ has the higher background implied (20.778%), but I've already got some QQQ on. Metrics: Max Profit: 1.38 at the mid price. Max Loss/Buying Power Effect: 2.62/contract Break Evens: 155.62/170.69 Theta: 1.92 Delta: -7.34 Notes: It may require some minor adjustment at open, depending on what futures do in the overnight, and the underlying does in pre-market ... .
AMEX:IWM
by NaughtyPines
OPENING: QQQ SEPT 28TH 170/174/2X188/2X190 IRON CONDOR... for a 1.34/contract credit. Max Profit: $134/contract Max Loss: $266/contract Break Evens: 172.66/188.67 Delta: -5.37 Theta: 1.83 Notes: A slight variation on a delta-based setup to accommodate skew. Instead of selling equally valued delta on both the put and call sides, I'm selling strikes that are equidistant from current price, but doubling up a narrower call side spread. The risk of the setup is attributable to the widest wing, so the call side risk is 2 x a 2-wide (minus the credit received) or 4.00 minus the credit received -- the same as that of the put side (a 4-wide or 4.00 minus the credit received). Going out the standard 45 days until expiration, collecting one-third the width of the widest wing, and looking to manage at 50% max.
NASDAQ:QQQ
by NaughtyPines
6
XOP MAY 18TH 30/32/39/41 IRON CONDOR (LATE POST)I apparently neglected to post this when I put it on back on March 27th in the kid's small account, and am doing so here primarily to keep track of cost basis. Here's the blow by blow: On March 27th, I opened this trade for a .50/contract credit. On April 7th, I closed out the short put side for a .05/contract, with a resulting cost basis of .45/contract. Because I needed some short delta, as well as thinking that oil would come off its highs post-OPEC jawboning, etc., I haven't yet moved to cover the short put side or to roll out the short call side for duration (to the June monthly) and then sell a short put vertical against. I will look at doing that next week ... .
AMEX:XOP
by NaughtyPines
OPENING: EWZ MAY 18TH 39/41/48/50 IRON CONDOR... for a .62/contract credit. Metrics: Probability of Profit: 57% Max Profit: $62/contract Max Loss: $139/contract Break Evens: 40.39/48.61 Variants: May 18th 41/48 short strangle, 1.30/contract at the mid; break evens at 39.70/49.30. May 18th 38/41/48/51 iron condor; .75/contract at the mid; break evens at 40.25/48.75. Notes: With background implied remaining fairly high (33.4%), I'm going small with this defined risk setup in the kid's small account, but using the short strangle variant in mine. Looking to take profit on both the iron condor and the short strangle at 50% max.
AMEX:EWZ
by NaughtyPines
Open EEM skewed IronCondor/capped lizard Mar16www.tradingview.com Caught my notice as one of many stocks that popped back to begin filling yesterday's gap. The longer term trend is up. Schaff Trend Cycle (bottom panel indicator - this is a modification of LazyBear's @LazyBear, customized line color for up/down direction and background color for Elder Ray EFI grn/red above below zero and dark green/red rising or falling) anyhow this shows cycle down from drop but background shows bounce and continuance of uptrend (to me). Options are liquid so little cost to getting in and out of the position. Cost: 78 credit/contract Max P/L 78/222 upside minimum 28 profit, no loss Spot when opened 51.11 IV rank percentile 99 Theta .44 Delta 15.9 POP: probability of making .01 or more on the trade 69% Profit target 25. The bet here is that EEM will continue to rise, that the high IV will collapse decreasing debit/increasing profit to close the position. If it does this quickly I will grab the money and remove the risk quickly. If it drifts up, Theta decay and price will improve the position. It has some room to drift down and minimum movement would keep it in the higher profit zone (between the short strikes). This is more of a directional trade with a defined max loss so if it goes against me quickly to max loss there will be nothing to lose in waiting for it to come back. If it charges down to breakeven I will review my sentiment and if I think it has whiplashed on me to reverse down again I may close it near scratch. So I posted the trade and now am "hung by the tongue" in that we will all see if this is profitable or not. Fun!
AMEX:EEMLong
by Tom1trader