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Friday, June 20, 2014

August 2014 RUT Iron Condor

With 8 weeks to August expiration I entered this:

Buy 2 RUT August 1050 Put @4.40
Sell 2 RUT August 1060 Put @5.00
Sell 2 RUT August 1260 Call @2.75
Buy 2 RUT August 1270 Call @1.85

Credit: 1.50 ($300)
Max Risk: 8.50 ($1700)
Days to expiration: 56
Probability of success: 77%

This is the first trade of the August expiration cycle. Volatility is low at the moment, but, has been low for 20 months so who cares. Remember: Nobody knows anything. All you need is a strong risk management plan for when things go wrong, so you don't destroy your account.

Here's a chart of RUT after market close for my own future reference:
(Click on image to enlarge)

These are the current positions in the portfolio after today:
SPX 1735/1740/2010/2015 Iron Condor $370 credit. 76% probability of success. 28 days to go.
SPY 191/197 Double Put Calendar Spread 45% probability of success. 28 days to go.
SPX 1805/1810 Bull Put spread $150 credit. 99% probability of success. 28 days to go
August 1050/1060/1260/1270 Iron Condor $300 credit. 77% probability of success. 56 days to go.

Check out 2014 Track Record

Related Articles:
Weekend Portfolio Analysis (June 29, 2014)
Weekend Portfolio Analysis (July 12, 2014)
Weekend Portfolio Analysis (July 19, 2014)
Weekend Portfolio Analysis (July 26, 2014)
Weekend Portfolio Analysis (August 2, 2014)
Weekend Portfolio Analysis (August 9, 2014)
Position expires for max profit on August 15, 2014 

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