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BookingAlpha Option Trading Advisory

Tuesday, September 10, 2013

October SPX Put side of Iron Condor rolled up

As per my tweet today in the afternoon

I closed the Put side (1525/1530) of the October SPX Iron Condor
At the same time I opened a new Credit Put spread on SPX a little further up (1540/1545)

The whole operation was as follows:
Sell to close 4 Oct Put 1525 (@3.15)
Buy to close 4 Oct Put 1530 (@3.30)
Sell to open 4 Oct Put 1540 (@4.20)
Buy to open 4 Oct Put 1545 (@3.80)

All for a net credit of 0.25.
The SPX 1525/1530 as you can see, was closed for a 0.15 debit.  This original spread had been entered for a 0.50 credit. So, in the end it represents a 0.35 profit, or $140 in 4 contracts per leg.

The new Credit Put Spread 1540/1545 has a 0.40 credit. I took some profits and redeployed capital in a region where I believe SPX won't go in the next month.

With this trade, there is now an SPX Iron Condor in October with strikes 1540/1545/1750/1755. Total credit of 0.90 and probability of success 76.56% with 37 days until expiration.

(Click on image to enlarge)

There are also two more positions with expiration in September. They are not concerning and should expire for full profit in 10 days:
September SPX Iron Condor(1560/1565/1760/1765) not in danger at this point.
RUT 935/940 Bull Put spread not danger at all here.

Finally a chart of SPX after market close, for my own reference in the future.
(Click on image to enlarge)


Check out 2013 Track Record


Related Articles
Weekend Portfolio Analysis (September 14, 2013)
1540/1545 Put spread rolled up for profit on September 16, 2013
Weekend Portfolio Analysis (October 12, 2013)


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