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Wednesday, July 27, 2016

September SPX Credit Put spread to complete Iron Condor

Today, with the market in No man's land territory, it was time to enter a September Iron Condor position. Because I already have 3 Credit Call spreads on, one of them with September options, I decided to just enter a Credit Put spread this time around, in order to not add more upside risk to the portfolio.

Trade Details
SELL 20 SPX September 1980 Put (@8.10)
BUY 20 SPX September 1970 Put (@7.50)

Net Credit: 0.60 ($1,200)
Max risk: 9.40 ($18,800)
Days to expiration: 50.

This CPS complete a September Iron Condor, with the existing 2260/2270 Call spread side which is in play since July 12. The real max risk for the Iron Condor is $17,000, with a total Credit received of $3,000.

Finally an SPX chart at market close for future reference:
(Click on image to enlarge)

Trade Update - September 16, 2016

Position expires successfully. $1,200 gain.

 Check out 2016 Track Record

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