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BookingAlpha Option Trading Advisory

Thursday, June 22, 2017

August 2017 SPX Unbalanced Iron Condor

Trade Details:

20 SPX 2270/2260 Credit Put spreads  0.55 Credit ($1100)
5   SPX 2520/2530 Credit Call spreads 0.80 Credit ($400)

Net Credit: $1,500
Days to Expiration: 57
I decided to go with a 4:1 ratio of Puts to Calls instead of my usual 2:1. This is because there is a July SPX Unbalanced Iron Condor whose Call side has taken some heat and I want to avoid having to adjust the Call side of both at the same time. By playing 4:1 ratio, I will be able to delay Call side adjustment on this new August position up to SPX 2,515. All in exchange for less overall credit in dollar terms than usual.

Profit picture:
(Click on image to enlarge)

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

Trade Update - August 2, 2017

Closed the whole position as follows:
Closed 20 SPX 2270/2260 Credit Put spreads  0.05 debit
The original credit was 0.55 per. Net Gain is therefore 0.50 or $1,000 in 20 spreads.

Closed 5 SPX 2520/2530 Credit Call spreads 0.35 debit
The original credit was 0.80 per spread. Net gain is 0.45 per spread. $225 in dollar terms.

Combining both sides, the final result is a $1,225 gain.

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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