<\/a><\/p>\nReally flat deltas, and if the VIX falls further that will help as well.<\/p>\n
Now what I expect to happen here is for the upside to get squeezed. If we see a move to 2150, then we will close out the call spread and ROLL it higher, and DOUBLE the size.<\/p>\n
Adding that size will NOT increase total margin, but it will increase total upside risk.<\/p>\n
\nUpdate: 3\/4\/15<\/h2>\n
My favorite kind of iron condor– one where I can just sit in it without needing to adjust and I can collect the profits.<\/p>\n
The current unrealized gain is between 60-75% of max credit, and there’s more than a month left to options expiration.<\/p>\n
The reason this trade’s doing so well is that the market is pulling back just a bit while implied volatility still stays pretty low.<\/p>\n
I want to work out of this trade. Now… SPX options are a pain to get filled, so I pulled the bid\/ask and mid on both sides of the spread to figure out what kind of fills I can get:<\/p>\n
<\/p>\n
So the best bet here is to place orders at those prices. If you really really need to get out of the trade, then bid 0.40 and 0.30.<\/p>\n
If you don’t mind sticking around the trade a bit longer, then just put orders out at 0.30 and 0.20. You may not get filled now, but you probably will by Friday.<\/p>\n
Basically, try and exit the iron condor at a price between 0.50 and 0.70… I’d focus on the low side to pull a few more dollars out of the trade.<\/p>\n
<\/p>\n
\nMargin and P\/L<\/h2>\n
Initial Margin<\/strong>
\nSpread Width: 10,000
\n5 Call Spreads @0.90 = 450
\n10 Put Spreads @0.70 = 700
\nMargin: 8850<\/strong><\/p>\nPut Side Profit<\/strong>
\n10 Enter at 0.70, Exit at 0.25
\n0.45 Profit
\n450 Total Profit<\/strong><\/p>\nCall Side Profit<\/strong>
\n5 Enter at 0.90, Exit at 0.35
\n0.55 Profit
\n275 Total Profit<\/strong><\/p>\nTotal Profit: 725<\/strong><\/p>\nRoR: 8.2%<\/strong><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"
This is a tricky trade because of the liquidity. There’s nobody trading on these contracts yet, so you need to be *very* picky with your orders and fills. Basically… I’m expecting the market to grind higher. That means a good amount of trend, but not explosive movement all at once. That means the VIX will […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":1,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":1,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[29,27],"tags":[],"_links":{"self":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/9527"}],"collection":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/comments?post=9527"}],"version-history":[{"count":2,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/9527\/revisions"}],"predecessor-version":[{"id":10024,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/9527\/revisions\/10024"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=9527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=9527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=9527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}