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Tuesday, August 19, 2014

October 2014 RUT Iron Condor

Today I entered the first position of the October 2014 expiration cycle:

Here are the details:

Buy 2 RUT October 1020 Put @4.02
Sell 2 RUT October 1030 Put @4.58
Sell 2 RUT October 1230 Call @3.18
Buy 2 RUT October 1240 Call @2.08

Credit received: 1.66 ($332 for 2 contracts per leg)
Max risk: 8.34 ($1668 for 2 contracts per leg)
Days to expiration: 59
Probability of success: 78%

As usual, here's the chart of RUT for future reference:
(Click on image to enlarge)
Yellow horizontal lines representing the short strikes of the Iron Condor, a.k.a where I don't want the market to go.

With this trade, this is how the portfolio looks now:

RUT 980/990 Bull Put Spread $120 credit and 30 days to expiration.
SPX 1815/1820/2065/2070 Iron Condor $340 credit and 30 days to expiration
RUT 1020/1030/12340/1240 Iron Condor $332 credit and 59 days to expiration

Check out 2014 Track Record

Related Articles:
Weekend Portfolio Analysis (August 30, 2014)
Weekend Portfolio Analysis (September 6, 2014)
Weekend Portfolio Analysis (September 13, 2014)
Weekend Portfolio Analysis (September 20,2014)
Weekend Portfolio Analysis (September 27, 2014)
Weekend Portfolio Analysis (October 4, 2014)
Adjustment on the Put side. Took a small loss (October 10, 2014)
Weekend Portfolio Analysis (October 11, 2014) 
Closed adjusted Put side 910/920 closed for a profit (October 21, 2014)

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  1. I got in the same position. Let see how this goes. I don't like iron condors because it seems like they have a higher tendency to get hit than when we sell during market extremes.

  2. You should have said "Let's " hehehe
    Yes, Iron Condors have a greater tendency to getting hit. But over the long run I think I can extract positive returns from them that become a nice addition to the individual credit spreads. We'll see if that's the case with this one. In any case, no need to obsess over one single particular position.