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Friday, April 24, 2015

June 2015 RUT unbalanced Iron Condor

A few hours ago I entered the first position of the June expiration cycle:

Here are the details of this trade:

Buy 2 RUT June 1130 Put @4.28
Sell 2 RUT June 1140 Put @4.87
Sell 1 RUT June 1340 Call @3.18
Buy 1 RUT June 1350 Call @2.11

Credit: 2.25 ($225)
Max Risk: $775 to the upside, $1775 to the downside.
Days to expiration: 57

Here's the profit picture of this unbalanced Iron Condor:
(Click on image to enlarge)

A chart of RUT at market close for future reference and self study:
(Click on image to enlarge)

Current positions in the Portfolio:

May RUT 1100/1110/1330/1340 unbalanced Iron Condor 
$225 credit, 88% probability of success and 22 days to expiration

June RUT 1130/1140/1340/1350 unbalanced Iron Condor
The trade discussed in this article.
$225 credit, 76% probability of success and 57 days to expiration

I'll continue to trade this market conservatively via unbalanced Iron Condors until we reach an extreme. I spent 35 days without entering new trades and I will continue to not force anything. My next play is an SPX Credit Call spread if the market shoots higher from here and becomes overbought.

Check out 2015 Track record

Related Articles:
Weekend Portfolio Analysis (May 2, 2015)
Getting ready to defend. No reason to panic (May 7, 2015)
Weekend Portfolio Analysis (May 9, 2015)
Weekend Portfolio Analysis (May 16, 2015)
Weekend Portfolio Analysis (June 7, 2015)
Weekend Portfolio Analysis (June 14, 2015) 
Position expires for full profit (June 20, 2015)

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