***Closed***SPY iron condor initiated on 24 Nov 2009
14 Dec 2009: Close Trade
SPY (Standard & Poors Dep Rec) Iron Condor initiated on 24 Nov 2009
Trade Type: Low Probability, High Reward Iron Condor (ETF Iron Condor)
Trade Summary
14 Dec 2009
SPY at 111.63 (0.50)
4 days to expiration
Action: Close trade
Buy to close SPY Dec 113 Call
Sell to close SPY Dec 115 Call
Buy to close SPY Dec 108 Put
Sell to close SPY Dec 106 Put
For a net price of $0.34-0.35 debit or better.
Profit or Loss: +$58 per entry
Analysis
We’re closing this trade today to lock in the profits and eliminate all risk. We’re not sure where the market will head but at the moment this trade is showing a decent profit. We initiated this trade for $93 credit using $107 of margin. Today we closed this trade for $35 debit apiece for a profit of $58 per entry. This gives us a profit of about 54.2%.
This is a good trade that we hope to have again and again.
Good trading,
Gary
******Trade History*****
24 Nov 2009: Initiate Trade
SPY (Standard & Poors Dep Rec) Iron Condor initiated on 24 Nov 2009
Trade Type: Low Probability, High Reward Iron Condor (ETF Iron Condor)
Trade Summary
24 Nov 2009
SPY at 110.68 (-0.14)
24 days to expiration
Action: Sell a new iron condor for Dec expiration.
Sell to open SPY Dec 113 Call
Buy to open SPY Dec 115 Call
Sell to open SPY Dec 108 Put
Buy to open SPY Dec 106 Put
For a net price of $0.93-0.94 credit or better. [All TOS autotrade participants were filled at $0.93.]
Net margin required: $106-107 per entry
Analysis
This is our second trade for December. Technically, the market can go either way from here. This condor has a delta of -3.43. Our short call is 3 SPY points (about 30 SPX points) away and our short put is more than 2 SPY points (about 20 SPX points) away currently. Our breakeven points are 113.93 on the upside and 107.07 on the downside with about 43% probability of success.
For this iron condor, we’re risking $107 to make $93, that gives us a risk/reward ratio (R3) of 1.15. This iron condor is considered a low-risk iron condor since we’re risking almost $1 for $1, $1.15 for $1 to be exact.
We are working on another 1 or 2 more trades for December. We’ll be in touch.
Good trading,
Gary
