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Sunday, August 25, 2013

October 2013 SPX Iron Condor

As tweeted on Friday
I entered the first October 2013 expiration position using an SPX Iron Condor as follows

Buy 4 SPX October 1525 Put @7.50
Sell 4 SPX October 1530 Put @8.00
Sell 4 SPX October 1750 Call @2.85
Buy 4 SPX October 1755 Call @2.35

Credit: 1.00 ($400 for 4 contracts per leg)
Max Risk 4.00 ($1600)
Probability of success was around 75% when the trade was entered.

I took advantage of  what I think is a nice opportunity, with a break even point way above the all time high in the upside and decent downside room as well of 9%. SPX would have to fall 9% by October 18, which is always possible but I think unlikely.

Finally a chart of SPX at market close for future reference
(Click on image to enlarge)

Check out 2013 Track Record

Related Articles
Weekend Portfolio Analysis (August 31, 2013)
Weekend Portfolio Analysis (September 7, 2013)
Roll up of the 1525/1530 Put side to 1540/1545 for profit
Weekend Portfolio Analysis (September 14, 2013)
1540/1545 Put spread rolled up to 1575/1580 for profit
Roll up of the 1750/1755 Call side

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