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Ironcondor

OPENING: RUT JULY 19TH 1440/1445/1625/1630 IRON CONDOR... for a 1.81/contract credit. Metrics: Max Profit: $181/contract Max Loss: $319/contract Break Evens: 1443.19/1626.81 Delta/Theta: -.81/1.82 Notes: Been a while since I've done any RUT. Collecting more than one-third the width of the wings with the shorties camped out around the 20 delta strike. Will roll the untested side on approaching worthless intratrade to bring in additional credit, improve break evens, and/or reduce max loss potential. Looking to take profit at 50% max (.90/$90).
TVC:RUT
by NaughtyPines
OPENING: EWZ JUNE 21ST 34.5/37.5/44/47 IRON CONDOR... for a 1.04/contract credit. With implied volatility fairly low across the board, going small, defined in the exchange-traded fund with the highest background implied volatility on the board (30.9%) to keep powder dry for something sexier to come along ... . Shorts nearest the 25 delta strike, longs nearest the 10 with slightly more than one-third the width of the wings collected. Shooting for that ol' 50% max. Go 37.5/44 short strange in June, and you'll collect 1.60 or so. Metrics: Max Profit: 1.04 ($104)/contract Max Loss: 1.96 ($196/contract) Break Evens: 36.46/45.04 Delta/Theta: -2.36/1.18
AMEX:EWZ
by NaughtyPines
OPENING: SMH JUNE 21ST 107/110/126/129 IRON CONDOR... for a 1.09/contract credit. Another premium selling play, small, defined in the semicon exchange-traded fund with implied volatility at nearly twice that of the broad market ... . Collecting slightly greater than one-third the width of the wings. Will look to take profit at 50% max. The naked 110/126 short strangle in the June cycle is currently paying 2.78. Metrics: Max Profit: $109/contract Max Loss/Buying Power Effect: $191 Break Evens: 108.91/127.09 Delta/Theta: -2.39/1.19
S
by NaughtyPines
THE WEEK AHEAD: TWTR EARNINGS, EWZTWTR (41/54) announces earnings on Tuesday before market open; pictured here is a May 17th 30/39 short strangle. Metrics: Max Loss/Buying Power Effect: Undefined/3.50/contract Max Profit: 1.09 Break Evens: 28.91/40.09 Delta/Theta: -3.99/4.92 Front Week to May Opex Volatility Differential: 41.5% Notes: Look to put a play on in the waning hours of the Monday session, adjusting the strikes to reflect any movement in the underlying if necessary. For those of a defined risk bent, the May 17th 27/31/38/42 iron condor is paying 1.13 with a buying power effect of 2.87, break evens of 29.87/39.13, and delta/theta of -1.24/2.9. It isn't quite what I like to see out of these (one-third the width of the widest wing in credit). By going slightly wider, you give up some credit at the door while increasing probability of profit. On the exchange-traded fund front, not much is rocking. Moreover, we're still in between cycles for me, with May opex being too short in duration and June being a touch long. As with last week, I'm looking to put something on in EWZ (14/30), since I don't have anything on at the moment, but have really just been waiting for June to get closer in time: the June 21st 36/44.5 short strangle is paying 1.23 with a buying power effect of about 4.10/contract, break evens at 34.77/45.73, and delta/theta metrics of -2.1/2.35. It's a little wider than I usually like to go (~25 deltas), but if I'm going to but it on early in the cycle, I want a little more room to adjust if necessary. The standard 25/10 iron condor in the June cycle is the 34/37/44/47, which is paying 1.02 with a buying power effect of 1.98, break evens of 35.98/45.02, and delta/theta of -2.05/1.07.
NYSE:TWTR
by NaughtyPines
Apr 18 - CELGCELG 18-Apr-19 IV30: 48.2, IVR: 98% Short Iron Condor +0.05D Long 1 Call: 100 Strike @ $0.15 -0.19D Short 1 Call: 95 Strike @ $1.00 -0.07D Long 1 Put: 65 Strike @ $0.62 +0.15D Short 1 Put: 70 Strike @ $1.40 -0.06D Credit: $1.63 PCR: 41:59 --------------------------------------------- CELG 18-Apr-19 IV30: 48.2, IVR: 98% Short Iron Butterfly +0.53D Long 1 Call: 85 Strike @ $6.23 -0.65D Short 1 Call: 80 Strike @ $9.15 -0.24D Long 1 Put: 75 Strike @ $2.62 +0.35D Short 1 Put: 80 Strike @ $4.38 -0.01D Credit: $4.68 PCR: 41:59 Highest OI @ 80 Strike
C
by imzeeshan
TRADE IDEA: EA APRIL 18TH 90/95/120/125 IRON CONDORMETRICS: Max Profit: $175/contract* ($87 at 50% max; 38.7% return on capital) Max Loss/Buying Power Effect: $225/contract Break Evens: 93.25/121.75 Delta: .26 Theta: 121.75 Notes: Another scrounge-around trade in an underlying with fairly high rank/high implied (51/45) post-earnings. Obvious Alternative Setups: April 18th 95/120 short strangle, 5.11 at the mid, break evens at 89.89/125.11, delta -5.21, theta 9.11. * -- Markets are showing wide here -- 1.17/1.75/2.32, so this may prove to be unsexy at NY open. I wouldn't settle for a fill that is less than one-third the width of the wings (1.67).
NASDAQ:EA
by NaughtyPines
How to manage a small portfolioWhen trading in a small account, it is very important to be efficient with the capital used. That is why, even though is not the optimal trade we are forced to trade using defined risk strategies like Iron Condors. This is the continuation of the portfolio started in our How to trade options series, where we start a portfolio from scratch. We started a $5,000 account and added 4 different trades. I closed 2 of those yesterday, open 2 new ones and defended one that was tested. The first management was closing trades with 3 weeks from the expiration date to reduce risk. We closed trades on QQQ and on XLU. Then we look for new trades and explained in the video how I chose the new trades and how to manage them. Also explained the impact of commissions when trading with a small account vs a bigger account and lastly we defended a trade that is going against us. Watch the video explanation for details: youtu.be
AMEX:FXY
by AlexanderGotay
M&M good for Short Strangle (700-800 type)?Although M&M slipped sharply after its monthly numbers, it is probably tracing a triangle. The upside should be capped for few weeks to recent highs around 814. Downside may extend to 720 (not beyond for few days). Seems good candidate for short strangle. Can also do a broken iron condor by adding a put protection to the downside, should ensure minimal loss if breaks heavily to the downside. All ideas shared for educational purposes only.
NSE:M&M
by yash_utmani