***Closed***IWM iron condor initiated on 25 Nov 2009
9 Dec 2009: Close Trade
IWM (iShares Trust Russell 2000 ETF) Iron Condor initiated on 25 Nov 2009
Trade Type: Low Probability, High Reward Iron Condor
Trade Summary
9 Dec 2009
IWM at 59.53 (+0.08)
9 days to expiration
Action: Close trade
Buy to close IWM Dec 61 Call
Sell to close IWM Dec 63 Call
Buy to close IWM Dec 58 Put
Sell to close IWM Dec 56 Put
For a net price of $0.60-0.61 debit or better.
Profit or Loss: +$34 per entry
Analysis
We decided to take some risk off the table and lock in some profit for now. This trade had performed well so far. But because this iron condor has the smallest profitable range, we decided not to risk the profits.
We are keeping a close look at our remaining trades and will inform you when the time is ripe to close.
Good trading,
Gary
*****Trade History*****
25 Nov 2009: Initiate Trade
IWM (iShares Trust Russell 2000 ETF) Iron Condor initiated on 25 Nov 2009
Trade Type: Low Probability, High Reward Iron Condor
Trade Summary
25 Nov 2009
IWM at 59.41 (+0.07)
23 days to expiration
Action: Sell a new iron condor for Dec expiration.
Sell to open IWM Dec 61 Call
Buy to open IWM Dec 63 Call
Sell to open IWM Dec 58 Put
Buy to open IWM Dec 56 Put
For a net price of $0.94-0.95 credit or better.
Net margin required: $106 per entry
Analysis
This trade comes in as a suprise. With the market activities so low, we were not expecting this order to be filled. In any case, this trade is rather similar to the SPY iron condor we entered yesterday.
Our breakeven points are 61.94 on the upside and 57.06 on the downside with a 43.21% probability of success. We are risking $106 to make $94, this gives us a risk/reward ratio (R3) of about 1.13. Again, we’re risking almost $1 for $1.
This holiday season low market volume is likely to continue into next week. This should be good for our positions since the market is expected to go sideway due to the lack of major participation.
We shall see what happens next week when the volume increases.
Good trading,
Gary
