Today I initiated a February 2017 Unbalanced Iron Condor in RUT:
Trade details:
BUY 20 February RUT 1200 Put @5.64
SELL 20 February RUT 1210 Put @6.30
SELL 10 February RUT 1470 Call @3.59
BUY 10 February RUT 1480 Call @2.78
Total Credit received: $2,130 (0.81 from Calls * 10 + 0.66 from Puts * 20)
Days to expiration: 57
I usually receive more credit than this, but in such a low volatility environment there is just no other alternative than to reduce our returns expectations. Speaking of low volatility. The VIX is still in the 11's and RUT is still uncomfortably far from its main moving averages. I thought it was a good idea to add some long Put exposure:
BUY 2 February IWM 126 Put @1.28
Total debit invested: $256
This is the risk profile of both positions combined:
(Click on image to enlarge)
An End-of-Day RUT chart for future reference and self-study:
(Click on image to enlarge)
Check out 2016 Track Record
If you are interested in a responsible and sustainable way of trading options for consistent income with solid risk management, consider acquiring LTOptions, my options trading system to the last detail.
FEB $RUT Unbalanced 1200/1210/1470/1480 Iron Condor. 0.66 Credit on Puts, 0.81 from Calls. Bought $IWM 126 Puts given the low volatility.— The Lazy Trader (@lazytrading) December 22, 2016
Trade details:
BUY 20 February RUT 1200 Put @5.64
SELL 20 February RUT 1210 Put @6.30
SELL 10 February RUT 1470 Call @3.59
BUY 10 February RUT 1480 Call @2.78
Total Credit received: $2,130 (0.81 from Calls * 10 + 0.66 from Puts * 20)
Days to expiration: 57
I usually receive more credit than this, but in such a low volatility environment there is just no other alternative than to reduce our returns expectations. Speaking of low volatility. The VIX is still in the 11's and RUT is still uncomfortably far from its main moving averages. I thought it was a good idea to add some long Put exposure:
BUY 2 February IWM 126 Put @1.28
Total debit invested: $256
This is the risk profile of both positions combined:
(Click on image to enlarge)
An End-of-Day RUT chart for future reference and self-study:
(Click on image to enlarge)
Trade Update - January 20, 2017
GTC Order to close the Unbalanced Iron Condor for 0.53 debit is triggered. Net gain: $1,600
75% of the Max profit was achieved in 29 days with 28 days before expiration.
The IWM 126 Puts are still in play and will be closed on Monday
GTC Order to close the Unbalanced Iron Condor for 0.53 debit is triggered. Net gain: $1,600
75% of the Max profit was achieved in 29 days with 28 days before expiration.
The IWM 126 Puts are still in play and will be closed on Monday
Trade Update - January 23, 2017
Closed the IWM 126 Puts for 0.42 credit. Originally purchased as downside protection at 1.28 debit.
Net loss is 0.86 per contract, in two contracts and dollar terms that is -$172
The entire position is now closed.
Closed the IWM 126 Puts for 0.42 credit. Originally purchased as downside protection at 1.28 debit.
Net loss is 0.86 per contract, in two contracts and dollar terms that is -$172
The entire position is now closed.
Check out 2016 Track Record
If you are interested in a responsible and sustainable way of trading options for consistent income with solid risk management, consider acquiring LTOptions, my options trading system to the last detail.
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