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Friday, January 20, 2017

March SPX Unbalanced Iron Condor

Today I initiated a March 2017 Unbalanced Iron Condor in SPX:

Trade details:

BUY  20 March SPX 2090 Put @8.00
SELL 20 March SPX 2100 Put @8.60
SELL 10 March SPX 2360 Call @4.14
BUY  10 March SPX 2370 Call @3.24

Total  Credit received: $2,100 (0.90 from Calls * 10 + 0.60 from Puts * 20)
Days to expiration: 56

Due to the super low VIX, I also added the following:

BUY 1 March SPY 214 Put @1.26
Total debit invested: $126

This is the risk profile of both positions combined:
(Click on image to enlarge)

An SPX chart for future reference and self-study:
(Click on image to enlarge)

Trade Update - February 13, 2017

The 2360/2370 Call side was closed for 2.80 debit.
The original credit received was 0.90, so, this is a 1.90 loss ($1900 in 10 Credit Call spreads)

A new 2400/2410 Credit Call spread was initiated @0.75 credit. 15 contracts per leg.
The new credit received is therefore 0.75 * 15 * 100 = $1,125.

After this adjustment we now have a 2090/2100/2400/2410 Unbalanced Iron Condor position made up of 20 Credit Put spreads ($1,200 credit)  and 15 Credit Call spreads ($1,125), for a total credit of $2,325. We also have a loss of $1900. There is still a chance to come out with an overall winner out of this given that the total credit collected is greater than the loss we had. Of course, due to the loss, it would be a smaller winner than originally expected.

Check out 2017 Track Record 

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