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Opening (Margin): SPY November 18th 320/338/388/406 Iron Condor... for a 6.13 credit. Comments: Putzing a bit with these so-called "synthetic short strangles" ... . Selling the 25's on both sides and erecting long wings out from there. I had to go oddball width with the wings (18.00) to keep the setup symmetrical, since there's only 5-wides on the put side. 6.13 credit on buying power effect of 11.87; 51.6% ROC as a function of buying power effect at max; 25.8% at 50% max. As with my QQQ setup (See Post Below), will look to roll the pairs of sides (long put/short call, long call, short put) for a realized gain and to delta balance.
AMEX:SPY
by NaughtyPines
Opening (Margin): QQQ November 18th 240/260/314/334 Iron Condor... for a 6.31 credit. Comments: Moving out to November, which is still a bit long-dated ... . Selling the 23's on both sides for my short legs, erecting longs 20 strikes out from there. 6.31 on BPE of 13.74; 45.9% ROC at max; 23.0% at 50% max. Here, I'm looking to manage just the short strangle aspect of the setup to delta balance if necessary, leaving the longs alone to safety tape off max loss as well as keep the buying power effect somewhat fixed. As I adjust the short options, however, the spread on one side or the other will widen, thereby increasing buying power effect, since that is attributable to the widest wing. For example, if I roll the short call down by one strike (1.00) and I get a .75 credit for doing that, the buying power effect will increase to 21.00 (since I've widened the wing to 21). However, I will have received a .75 credit for doing that, so my BPE will increase by 1.00 - the credit received or .25 ($25). As with a naked short strangle, I'll look to adjust just the short strangle aspect of the setup at a delta/theta ratio of >1.00. It's currently .01/17.93.
NASDAQ:QQQ
by NaughtyPines
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