Sorry I meant the second position:
Sold $SPX 1825/1815 August Credit Put spread for 0.60 credit.— The Lazy Trader (@lazytrading) July 8, 2015
Buy 2 August SPX 1815 Put @7.57
Sell 2 August SPX 1825 Put @8.17
Credit: 0.60. (Total: $120)
Max Risk: 9.40 (Total: $1880)
Days to expiration: 43
Well, I'm pulling the trigger here, attracted by the extreme pessimism reflected in only 21% of the stocks trading above their 20 Day Moving Average.
SPX defended 2040 support pretty well yesterday and today. As usual, we may fall from here, but I have given myself decent cushion for error.
Here's the chart of the SPX index after market close today, July 8, 2015 for my own future reference and self study:
(Click on image to enlarge)
Current positions in the Portfolio:
July SPX 1935/1940/2220/2225 unbalanced Iron Condor
$220 credit, 95% probability of success with only 8 days to expiration. I still like my odds here and I feel comfortable holding this position.
August RUT 1150/1160/1350/1360 unbalanced Iron Condor
$254 credit, 67% probability of success and 43 days to expiration. I may need to adjust the Put side if RUT keeps falling. My candidate for the adjustment would be 1080/1070 or perhaps 1070/1060 Put spread on the same August expiration cycle.
August SPX 1815/1825 Credit Put spread
The trade discussed in this article.
$120 credit, 89% probability of success and 43 days to expiration. Lots of baby sitting ahead.
I'm glad that July expiration is close because that will reduce some exposure on the portfolio. Every time you open a new position, every single time, you are taking additional risk. You are aiming for better returns at the expense of potential greater draw-downs.
Check out 2015 Track record
Weekend Portfolio Analysis (July 18, 2015)
Closed the position early for profit (July 23, 2015)