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Friday, October 24, 2014

December 2014 SPX Iron Condor

Today I entered the first trade of the December 2014 monthly options expiration cycle:


Trade details:

Buy 2 SPX December 1750 Put @8.05
Sell 2 SPX December 1760 Put @8.75
Sell 2 SPX December 2070 Call @4.10
Buy 2 SPX December 2080 Call @3.10

Credit received: 1.70 ($340 in 2 contracts per leg)
Max risk: 8.30 ($1660 in 2 contracts per leg)
Max return on risk: 20.48%

With the VIX still above 16 right before entering what historically is the strongest period of the year (November - January) I feel comfortable with this position.

It feels good to be back entering trades as part of an attack plan and not out of the need for defending other positions in the portfolio.

A chart of SPX after market close for future reference:
(Click on image to enlarge)

Current positions after this trade:

November RUT 970/980 Credit Put Spread
$120 credit. 98% probability of success. 27 days to expiration.

November RUT 1150/1160 Credit Call spread
$200 credit. 69% probability of success. 27 days to expiration. May need adjustment next week.

November SPX 1685/1690 Credit Put Spread
$120 credit. 99% probability of success. 27 days to expiration.

December SPX 1750/1760/2070/2080 Iron Condor
The trade described on this article. $340 credit. 76% probability of success. 55 days to expiration.


Check out 2014 Track Record

Related Articles:
Weekend Portfolio Analysis (November 16, 2014)


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