** Unbalanced IC in SPX

[Steven Place]

Below are strikes, the bid/ask and the potential fills you can get:

On the put side, I think a fill of 0.90 will work, and on the call side a fill of 1.50 should happen as the market is rallying a bit today.

REMEMBER: this is an UNBALANCED iron condor. We are going HALF SIZE on the call side to mitigate the risk of a large move higher.

IF SPX breaks 2150 then we will roll and add to the call side.

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[Brian Caffrey]

Steven, Could I do this trade with SPY?

[Steven Place]

Brian, you can do something similar with SPY but the commissions can really eat away at your trade. Make sure you’re going at least 3 wide on your spread sales with SPY.

[Charles]

I went with SPY five wide. Are there any issues if I wanted to go 7 to 10 wide?

[Charles]

It looks like you really have to pay up for the long put.

[Steven Place]

If you’re going to go 10 wide you might as well be doing the SPX.

[Charles]

That’s seems to be how it is working out as I test it.

[Steven Place]

Time to bail on the trade. We’ve got 30 days left to expiration which is the ideal exit time.

Buy to close Aug 1980/1970 put spread @.50 or lower

Buy to close Aug 2200/2100 call spread @0.40 or lower

[Author]

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