***Closed***SPY Iron Condor initiated on 29 June 2010
16 July: Close call spread
SPY (Standard & Poors Dep Rec) Iron Condor initiated on 29 June 2010
Trade Type: Low Probability, High Reward Iron Condor
Trade Summary
16 Jul 2010
SPY at 107.37 (–2.305)
17 days to expiration
Action: Close call spread.
Buy to close SPY Jul 108 Call
Sell to close SPY Jul 110 Call
For a net price of $0.15 debit or better.
Profit or loss: +$81 per entry
*****Trade History*****
29 June 2010: Initiate Trade
SPY (Standard & Poors Dep Rec) Iron Condor initiated on 29 June 2010
Trade Type: Low Probability, High Reward Iron Condor
Trade Summary
29 June 2010
SPY at 104.34 (-3.18)
17 days to expiration
Action: Sell a new iron condor for July expiration.
Sell to open SPY Jul 108 Call
Buy to open SPY Jul 110 Call
Sell to open SPY Jul 100 Put
Buy to open SPY Jul 98 Put
For a net price of $0.96-0.98 credit or better. [All TOS autotrade participants were filled at $0.96 credit.]
Net margin required: $104 per entry
Analysis
This is our second trade for July. We’re taking advantage of the spike in IV today to collect more premiums with only 17 days to expiration. We are risking $104 to make $96, that gives us a risk/reward ratio (R3) of about 1.08. Our breakeven points are 108.96 on the upside and 99.04 on the downside. As you can see from the P&L chart below, there is about 47% chance that this trade will be profitable.
Because we’re risking close to even money, we can afford to be slightly more patient and wait for time decay to work its magic in the next 2 weeks. However, we’re also acutely aware of the market uncertainty that we’re seeing today.
That’s all for now folks, good trading,
Gary
Hi Thomas,
Sorry for the bad links, try clicking on the title at the top of the trade alert.
Thanks for the feedback.