CHRISTMAS PROMOTION
LTOptions at a 33% discount during the Year End Holidays.
Tell me More

Saturday, April 26, 2014

June 2014 SPX Iron Condor

I opened an SPX Iron Condor yesterday using June 2014 options:

This is how it would proportionately look for the model portfolio:
Buy 4 June SPX 1710 Put    $7.20
Sell 4 June SPX 1715 Put    $7.50
Sell 4 June SPX 1965 Call   $2.80
Buy 4 June SPX 1970 Call   $2.30

Credit: 80 ($320 in 4 contracts per leg)
Max Risk: 4.20 ($1680 in 4 contracts per leg)
Days to expiration: 56

SPX closed the day at 1863
As usual, the chart after market close for my own future reference
(Click on image to enlarge)

There are now four positions in the portfolio: 2 May positions, and 2 June positions.

May:
SPX 1695/1700/1960/1965 Iron Condor 93% probability of success. $320 credit
RUT 1000/1010 Bull Put Spread  98% probability of success. $120 credit


June:
RUT 920/930 Bull Put Spread 98% probability of success. $120 credit
SPX 1710/1715/1965/1970 Iron Condor 76% probability of success. $320 credit.

Check out 2014 Track Record

Related Articles:
Weekend Portfolio Analysis (May 3, 2014)
Weekend Portfolio Analysis (May 10, 2014)
Weekend Portfolio Analysis (May 25, 2014)
Closed Call side of the Iron Condor to mitigate risk (May 29, 2014)
Weekend Portfolio Analysis (June 7, 2014)
Weekend Portfolio Analysis (June 14, 2014) 
Put side expires for full profit (June 21, 2014)


Go to the bottom of this page in order to see the Legal Stuff

5 comments:

  1. Looks good. Any reason why you opened the June SPX iron condor yesterday? How quickly did you get filled?

    ReplyDelete
  2. Reason? Nothing in particular. 8 weeks to expiration, no man's land territory market, there goes my Iron Condor. I only enter them with plenty of time premium so I can distance my strike prices decently.
    Took a while to get filled, but not as bad as other times. Maybe 20 - 25 minutes perhaps. I got my 0.80 fill when mid price was 0.90

    ReplyDelete
  3. Seems likes it takes forever to get filled when trying to close a SPX position.
    Had a May IC, sold for .90 in March closed for .25 Friday. Watched the price go way under .25 many times before Friday. I'm wondering if SPY is better for getting filled...

    ReplyDelete
  4. It's pretty bad Brian. Like I said, I got my fill for .80 when mid price was .90
    SPY is definitely very liquid and you shouldn't have problems getting fills if you target the mid price.
    I try SPX first, as you use less contracts and spend way less in commissions. Plus SPX has a preferential tax treatment once you report gains. But other than that SPY is a more liquid vehicle and shouldnt give you problems.

    ReplyDelete
  5. Hey LT,

    Yeah, to have a equivalent position in SPY as you would in SPX means large commissions.
    Just feels like the open outcry floor trading of SPX makes for slow fills.....

    ReplyDelete