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Saturday, April 27, 2013

June 2013 SPX Iron Condor

With 8 weeks to expiration, an SPX 1430/1435/1660/1665 Iron Condor was sold yesterday (Friday April 26) for 0.80 credit as follows:

BUY 4 SPX 1430 Put @4.70
SELL 4 SPX 1435 Put @5.00
SELL 4 SPX 1660 Call @3.10
BUY 4 SPX 1665 Call @2.60


Credit: 0.80 ($320)
Margin: 4.20 ($1680)
Max return on Margin: 19.05%
Days to expiration: 55
Break-even points: 1434.20 and 1660.80

It wasn't possible for me to write up this article yesterday, but if you want to know about my trades with more immediacy you can follow me on twitter, I usually twit them out a few seconds after I get the fills.

SPX was around 1585 when the trade was entered. I'm leaving 75 points to the upside vs 150 to the downside, allowing for some correction that just will happen at some point.

(Click on image to enlarge)
78.64% probability of success.

Finally, as usual, a chart of SPX at market close on Friday for future reference

(Click on image to enlarge)

This is the first trade of the June expiration cycle.

Check out Track Record for 2013

Related Articles:
Weekend Portfolio Analysis (05-04-2013)
June 2013 SPX Iron Condor adjustment 


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5 comments:

  1. Yes. I've had better results with it. Although I must admit you get easier fills with RUT. At least in my experience

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  2. Yes. You are right. I always hear people complaining about getting fills on SPX but never on RUT.

    ReplyDelete
  3. Since you placed this trade, SPX has gone up 42 more points. People always fear the downside while neglecting the fear of the upside. One day we will have a correction. Don't know when or what will trigger it but it is coming. This market reminds me of the bubble market of 1999 and 2007 when stocks when up almost everyday and people were blindly buying stocks cause it can't possibly go down. 2013 might turn out to be another great year. But 2014 might be a different story.

    ReplyDelete
  4. Absolutely. This year has turned out to be a scary one for non-trend followers. This proves that there's no perfect strategy. Only strategies that are good for specific times

    ReplyDelete