Initiated Nov $RUT 1110/1120/1340/1350 Unbalanced Iron Condor position. 0.65 credit from Put side, 0.95 from Call side.— The Lazy Trader (@lazytrading) September 23, 2016
Sold 20 November RUT 1110/1120 Credit Put spread: 0.65 Credit ($1,300)
Sold 12 November RUT 1340/1350 Credit Call spread: 0.95 Credit ($1,140)
Total Credit received: $2,440
Days to expiration: 56
A RUT Chart twenty something minutes into market open for future reference and self-study:
(Click on image to enlarge)
1340/1350 Call side closed for 0.01 debit. Original credit: 0.95.Closed Nov $RUT unbalanced Iron Condor for small gain. Don't want trouble with it next week.— The Lazy Trader (@lazytrading) October 27, 2016
Net gain: 0.94, which in 12 spreads represents +$1,128
1110/1120 Put side closed for 1.02 debit. Original credit: 0.65.
Net loss: 0.37, which in 20 spreads represents -$740
Combining both sides, the result is a net +$388 gain.
A chart for future reference:
The alternative was to purchase insurance, for example IWM long Puts, above the 1120 RUT strike equivalent. For example IWM 113 or 114. But then, the investment in this insurance would eat into my potential returns. So, I decided to just close the shop and forget about this position. Again, I'm being extra conservative simply because it is late in the year and my returns have not been spectacular. I can't afford a set back this late in the year.
Check out 2016 Track Record