December SPX Iron Condor

Today I opened the first trade of the December 2013 options expiration cycle as follows:

BUY 4 Dec SPX 1600 Put @5.10
SELL 4 Dec SPX 1605 Put @5.30
SELL 4 Dec SPX 1835 Call @4.00
BUY 4 Dec SPX 1840 Call @3.40

Credit: 0.80 ($320)
Max Risk: 4.20 ($1680)
Days to exp: 56

Implied volatility is low but it tends to remain that way for the rest of the year as markets are usually strong in November and December. I think this market is overbought at this point, with over 75% of stocks above the 20 Simple Day moving average but I feel the short Put at 1605 is safe enough.

Finally a chart of SPX today for future reference:
(Click on image to enlarge)

 Check out 2013 Track Record

Related Articles:
Weekend Portfolio Analysis (November 2, 2013)
Weekend Portfolio Analysis (November 9, 2013)
Call Side 1835/1840 adjusted further up to 1850/1855 on November 14
Weekend Portfolio Analysis (November 16, 2013)
Weekend Portfolio Analysis (November 23, 2013)
Weekend Portfolio Analysis (November 30, 2013)
Weekend Portfolio Analysis (December 7, 2013) 

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