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Thursday, October 19, 2017

December SPX Unbalanced Iron Condor

Trade Details:

20 December SPX 2400/2390 Credit Put spreads  @0.50 Credit ($1000)
10 December SPX 2635/2640 Credit Call spreads @0.50 Credit ($500)

Net Credit: $1,500
Days to Expiration: 57

Conservative Call side once again.
Notice that even though the number of Puts is twice the number of Calls, in reality these Call spreads are 5-point wide. So, the risk profile is similar to that of other Unbalanced Iron Condors I have played where both spreads are 10-point wide and the ratio of Puts to Calls is 4 to 1. Basically what this means, is that I'm artificially still playing a 4:1 ratio of Puts to Calls in this position, as the ten 2635/2640 spreads are similar to having played five 2635/2645.

I had to end up entering the legs separately and the fills took a while, even giving up 0.05 per spread on the Put side. Really challenging times with such low volatility.

Profit picture:
(Click on image to enlarge)


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




Trade Update - November 27, 2017
As explained over the weekend, I'm closing the 2635/2640 Call side of the December SPX Unbalanced IC at a loss and partially mitigating it by selling a small Credit Put spread.

Closed 10 November SPX 2635/2640 Credit Call spreads @0.90 debit
The original credit was 0.50 per spread, so this is a net loss of 0.40 per spread.
A $400 loss for 10 spreads.

I immediately sold a Credit Put spread:
SELL 10 December SPX 2525/2520 Credit Put spreads @0.25 Credit ($250)

So, we now have:
- A $400 loss from the Call side 2635/2645 (closed)
- $1000 credit from the SPX 2400/2390 Put spreads.
- $250 credit from the SPX 2525/2520 Put spreads.


No upside exposure and a good chance (I think) of having a net winner in the end.

Trade Update - November 30, 2017

SOLD 10 December SPX 2690/2695 Credit Call spreads @0.50 Credit ($500)

So, we now have:
- A $400 loss from the first Call spread 2635/2645 (closed)
- $1000 credit from the 2400/2390 Put spreads.
- $250 credit from the 2525/2520 Put spreads.
- $500 credit from the 2690/2695 Call spreads


Trade Update - December 11, 2017

Closed 10 December SPX 2690/2695 Credit Call spreads @0.20 Dedit
The original credit was 0.50 so there is a 0.30 gain here ($300 in dollar terms for 10 spreads)
I'm leaving the Put spreads in play and will ride them to expiration for max gains.


Trade Update - December 15, 2017

Expiration Day:
2400/2390 Credit Put spreads expire ($1,000 profit)
2525/2520 Credit Put spreads expire ($250 profit)

Earlier on we already had:
- Taken a $400 loss from the first Call spread 2635/2645 (Nov 27)
- Taken a $300 gain from the 2690/2695 Credit Call spreads (Dec 11)

The overall net result in the end is +1000 + 250 -400 + 300 = $1,150


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