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Thursday, March 19, 2015

May 2015 RUT unbalanced Iron Condor

Today I started to play the first position of the May expiration cycle. This was an unbalanced Iron Condor and I chose to play it with RUT this time.

Trade Details:

BUY 2 RUT May 1100 Put @4.30
SELL 2 RUT May 1110 Put @4.95
SELL 1 RUT May 1330 Call @2.95
BUY 1 RUT May 1340 Call @2.00

Credit: 0.65 on Put side ($130 for 2 contracts) + 0.95 on the Call side ($95 for 1 contract). Total credit received $130 + $95 = $225
Max Risk: $1775 to the downside and $775 to the upside
Days to expiration: 57

No real reason for this Iron Condor. No Guru black magic: 8 weeks to expiration, no man's land market, there goes my Iron Condor.

A chart for study and future reference:
(Click on image to enlarge)
I now have 4 positions in the portfolio which is extremely rare and infrequent for me. The only reason I'm so loaded is because two of those positions will expire without problem in less than 48 hours, so I'm fine having this risk on for just less than two days. Come Monday, the portfolio will be back to two positions as usual.

Current positions in the Portfolio:

March SPX 1845/1850/2170/2175 unbalanced Iron Condor
$220 credit for the Model portfolio. Looking great. Will expire without problems on Saturday morning.

March SPX 1965/9170 Credit Put Spread
$120 credit for the Model portfolio size. Will expire worthless on Saturday as well.

April SPX 1855/1860/2200/2205 unbalanced Iron Condor
$220 credit for the Model portfolio. Looking great with a greater than 85% probability of success and 30 days to expiration.

May RUT 1100/1110/1330/1340 unbalanced Iron Condor
The trade described on this article. $225 credit for the Model Portfolio and 57 days to expiration.

You can follow me on Twitter @lazytrading

Check out 2015 Track record

Related Articles:
Weekend Portfolio Analysis (April 4, 2015)
Weekend Portfolio Analysis (April 11, 2015)
Weekend Portfolio Analysis (April 25, 2015)
Weekend Portfolio Analysis (May 2, 2015)
Getting ready to defend. No reason to panic (May 7, 2015)
Weekend Portfolio Analysis (May 9, 2015)
Position expires for max profit (May 16, 2015) 

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