***Closed***IWM iron condor initiated on 26 Oct 2009
23 Nov 2009: Options expire worthless
IWM (iShares Trust Russell 2000 ETF) Iron Condor initiated on 26 Oct 2009
Trade Type: Low Probability, High Reward Iron Condor
Trade Summary
23 Nov 2009
IWM at 58.59
0 days to expiration
Action: Do nothing, let remaining options expire worthless.
Profit or Loss: +$41 per entry, 40.6%.
*****Trade History*****
5 Nov 2009: Close put spread
IWM (iShares Trust Russell 2000 ETF) Iron Condor initiated on 26 Oct 2009
Trade Type: Low Probability, High Reward Iron Condor
Trade Summary
5 Nov 2009
IWM at 57.69 (+1.46)
15 days to expiration
Action: Close put spread.
Buy to close IWM Nov 57 Put
Sell to close IWM Nov 55 Put
For a net price of $0.57-0.58 debit or better. [All TOS autotrade participants were filled at $0.58.]
Analysis
Similiar to the SPY iron condor initiated on 20 Oct 2009, we’re closing our put spread in this rally to lock in some profit.
Good trading,
Gary
*****Trade History*****
26 Oct 2009: Initiate Trade
IWM (iShares Trust Russell 2000 ETF) Iron Condor initiated on 26 Oct 2009
Trade Type: Low Probability, High Reward Iron Condor
Trade Summary
26 Oct 2009
IWM at 59.61 (-0.448)
25 days to expiration
Action: Sell a new iron condor for Nov expiration.
Sell to open IWM Nov 61 Call
Buy to open IWM Nov 63 Call
Sell to open IWM Nov 57 Put
Buy to open IWM Nov 55 Put
For a net price of $0.99-$1.00 credit or better. [All TOS autotrade participants were filled at $0.99.]
Net margin required: $101 per entry
Analysis
This is our third trade for November. We’re risking $101 to make $99 for this trade. This gives us a risk/reward ratio (R3) of 1.02. Our breakeven points are 61.99 on the upside and 56.01 on the downside with a probability of about 46.66% that IWM will trade between these 2 points. This iron condor has a delta of -5.35 apiece.
We believe that this is a good trade that offers us a good balance between profits and risk. We will continue to watch over all our open positions and keep you informed when any action is neccessary.
Good trading,
Gary
