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Wednesday, May 25, 2016

July SPX Unbalanced Iron Condor

Today I initiated a July unbalanced Iron Condor on SPX


Transaction Details:

Buy 20 SPX July 1890 Put @6.30
Sell 20 SPX July 1900 Put @6.85
Sell 10 SPX July 2175 Call @3.25
Buy 10 SPX July 2185 Call @2.15

Net Credit: 0.55 Credit from Puts ($1,100), 1.10 Credit from Calls ($1,100)
Max Risk: $7,800 to the upside above SPX 2,188.  $17,800 to the downside, below SPX 1,890.

SPX chart for future reference:
(Click on image to enlarge)

Trade Update - July 14, 2016

Call side closed in the morning for 1.85 debit:
Buy to Close 10 SPX July 2175 Call @2.37
Sell to Close 10 SPX July 2185 Call @0.52

Original credit on the Call side was 1.10.
Net 0.75 loss = $750 in 10 spreads.

I Immediately deployed a new Credit Call spread.
I went really far out this time to be able to get as far as possible from current price, so I sold the October 2300/2310 for 0.95 credit and using twice the number of spreads. So, 20 instead of 10.

SELL 20 SPX October 2300 Call (@5.55)
BUY 20 SPX October 2310 Call (@4.60)

Net Credit: 0.95 (+$1900 in dollar terms)

Trade Update - July 15, 2016
The 1890/1900 Put side of the original Unbalanced Iron Condor expires. Max profit obtained of 0.55, which means $1100 in dollar terms as 20 spreads were played on that side (0.55 * 100 * 20)

With this result, the original 1890/1900/2175/2185 unbalanced Iron Condor has resulted in a small $350 profit (a $750 loss on the Call side combined with this $1100 gain from the Put side).

In addition to this, there is still an October 2300/2310 Credit Call spread in play.

Trade Update - August 2, 2016

The October 2300/2310 Credit Call spread is closed for 0.45 debit.

A 0.95 credit had originally been received. So, net gain is 0.95 - 0.45 = 0.50. In dollars terms, at 20 contracts per leg, that is 0.50 * 100 * 20 = $1,000

This is the end of the July Unbalanced Iron Condor position.
To recap:

- We entered a 1890/1900/2175/2185 unbalanced Iron Condor on May 25.
- We closed the 2175/2185 Call side for a $750 loss on July 14.
- We deployed a 2300/2310 Credit Call spread on July 14.
- We let the 1890/1900 Put side expire for max profit of $1,100 on July 15.
- We closed the 2300/2310 Call side for a $1,000 gain on August 2.

Overall, this was a $1,350 gain, or +1.35% on a 100 grand account. Even though we had an early loss on the Call side we still ended up overall profitable in this particular play.


 Check out 2016 Track Record


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