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Monday, March 27, 2017

May 2017 SPX Unbalanced Elephant

Trade Details:

20 SPX 2160/2150 Credit Put spreads 0.65 Credit ($1300)
8  SPX 2440/2450 Credit Call spreads 0.80 Credit ($640)


1/10 SPY 221/245 Unbalanced Long Strangle (1.11 debit for the 221 strike Put, .30 debit for the 245 strike Calls. Total debit paid: $440 )

Net Credit: $1,529
Days to Expiration: 53

Note: A small account could have created a similar risk profile picture for example by playing a regular Iron Condor 2150/2160/2440/2450. Two contracts per leg, and adding 3 long SPY 246 Calls.

As explained on the weekend article, I flipped the order for the May cycle by starting it off with the Elephant, and the Unbalanced Iron Condor will come later.

Profit picture:
(Click on image to enlarge)

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

For details about the management of Unbalanced Elephant positions consider an membership, where there is also material that discusses how to put this type of position in small accounts too.

Check out 2017 Track Record

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