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Ironcondor

TRADE IDEA: IWM NOV 16TH 153/157/2X170/2X172 IRON CONDORAdding some nondirectional broad market in the November cycle on this uptick in volatility (IWM 30-day currently at 18.998%). QQQ has the higher background implied (20.778%), but I've already got some QQQ on. Metrics: Max Profit: 1.38 at the mid price. Max Loss/Buying Power Effect: 2.62/contract Break Evens: 155.62/170.69 Theta: 1.92 Delta: -7.34 Notes: It may require some minor adjustment at open, depending on what futures do in the overnight, and the underlying does in pre-market ... .
AMEX:IWM
by NaughtyPines
OPENING: QQQ SEPT 28TH 170/174/2X188/2X190 IRON CONDOR... for a 1.34/contract credit. Max Profit: $134/contract Max Loss: $266/contract Break Evens: 172.66/188.67 Delta: -5.37 Theta: 1.83 Notes: A slight variation on a delta-based setup to accommodate skew. Instead of selling equally valued delta on both the put and call sides, I'm selling strikes that are equidistant from current price, but doubling up a narrower call side spread. The risk of the setup is attributable to the widest wing, so the call side risk is 2 x a 2-wide (minus the credit received) or 4.00 minus the credit received -- the same as that of the put side (a 4-wide or 4.00 minus the credit received). Going out the standard 45 days until expiration, collecting one-third the width of the widest wing, and looking to manage at 50% max.
NASDAQ:QQQ
by NaughtyPines
6
XOP MAY 18TH 30/32/39/41 IRON CONDOR (LATE POST)I apparently neglected to post this when I put it on back on March 27th in the kid's small account, and am doing so here primarily to keep track of cost basis. Here's the blow by blow: On March 27th, I opened this trade for a .50/contract credit. On April 7th, I closed out the short put side for a .05/contract, with a resulting cost basis of .45/contract. Because I needed some short delta, as well as thinking that oil would come off its highs post-OPEC jawboning, etc., I haven't yet moved to cover the short put side or to roll out the short call side for duration (to the June monthly) and then sell a short put vertical against. I will look at doing that next week ... .
AMEX:XOP
by NaughtyPines
OPENING: EWZ MAY 18TH 39/41/48/50 IRON CONDOR... for a .62/contract credit. Metrics: Probability of Profit: 57% Max Profit: $62/contract Max Loss: $139/contract Break Evens: 40.39/48.61 Variants: May 18th 41/48 short strangle, 1.30/contract at the mid; break evens at 39.70/49.30. May 18th 38/41/48/51 iron condor; .75/contract at the mid; break evens at 40.25/48.75. Notes: With background implied remaining fairly high (33.4%), I'm going small with this defined risk setup in the kid's small account, but using the short strangle variant in mine. Looking to take profit on both the iron condor and the short strangle at 50% max.
AMEX:EWZ
by NaughtyPines
Open EEM skewed IronCondor/capped lizard Mar16www.tradingview.com Caught my notice as one of many stocks that popped back to begin filling yesterday's gap. The longer term trend is up. Schaff Trend Cycle (bottom panel indicator - this is a modification of LazyBear's @LazyBear, customized line color for up/down direction and background color for Elder Ray EFI grn/red above below zero and dark green/red rising or falling) anyhow this shows cycle down from drop but background shows bounce and continuance of uptrend (to me). Options are liquid so little cost to getting in and out of the position. Cost: 78 credit/contract Max P/L 78/222 upside minimum 28 profit, no loss Spot when opened 51.11 IV rank percentile 99 Theta .44 Delta 15.9 POP: probability of making .01 or more on the trade 69% Profit target 25. The bet here is that EEM will continue to rise, that the high IV will collapse decreasing debit/increasing profit to close the position. If it does this quickly I will grab the money and remove the risk quickly. If it drifts up, Theta decay and price will improve the position. It has some room to drift down and minimum movement would keep it in the higher profit zone (between the short strikes). This is more of a directional trade with a defined max loss so if it goes against me quickly to max loss there will be nothing to lose in waiting for it to come back. If it charges down to breakeven I will review my sentiment and if I think it has whiplashed on me to reverse down again I may close it near scratch. So I posted the trade and now am "hung by the tongue" in that we will all see if this is profitable or not. Fun!
AMEX:EEMLong
by Tom1trader
ROKU - Iron Condor, short 3 day expirationROKU options are selling at a very high premium (time value) due to very high IV%. To take advantage of the high premium I opened an Iron Condor. I chose an iron condor because I don't have a strong bias (bull/bear). This strategy provides a little more cushion whether it moves one direction or the other. I would have chosen a credit spread strategy if I did have a strong bias. 3 Days till expiration. 56/66 Calls & 45/35 Puts. Premium $3.58 per spread. ROKU price at order execution $50.02 Break even $59.58 & 41.42 GREEKS D G T V Net Spread: .0034 .0400 -.0514 .0048 IV% on each contract is between 219% - 260% (versus 61%)
NASDAQ:ROKU
by JLJ002500
3
Monthly Income Series IWMOur IWM has been sideway for many months. In view of market situation currently, we should have a last wave of uptrend and the heading south. So for now, I will still stand my view for IWM as slight uptrend will stronger sideway for short term view. From the chart, as usual i will most based on my Ta analysis, by drawing channel trend line, as well as Fib Retracement which has proven it work for IWM for the past 4-5 months. While i am waiting my previous monthly income series analysis on IWM, to expect IWM July options to expire OTM in 2 weeks time, with next monthly options August options DTE in around 40 days time, i would like to enter my trade on IC on IWM on below: STO Bear Call Spread 145/147 STO Bull Put Spread 135/133 forming IronCondor for Aug options @ $0.64, with BPE a contract of $141 with DTE 42 at the point enter, it worked out a good ROI per day.
AMEX:IWM
by DavidCkChoo
OPENING: SPY SEPT 1ST 238/241/249/251 IRON CONDOR... for a .95 credit. I really wanted to go with the highest implied volatility broad index exchange-traded fund (SPY, IWM, QQQ, DIA), 45 days until expiration, but the bid/asks were wide on both IWM and QQQ in the Sept 1st expiry, so went with SPY instead, which had a much tighter bid/ask. The short options here are set up around the 30 delta, so I'm somewhat surprised at the low probability of profit metric, which ordinarily would be around 50% ... . Will look to take profit at 50% max. Metrics: Probability of Profit: 43% Max Profit: $95/contract Max Loss: $205/contract Break Evens: 240.05/249.95 Delta: -2.57 Theta: .88
AMEX:SPY
by NaughtyPines
OPENING: IBM JULY 28TH 145/148/160/162.5 IRON CONDOR... for a 1.10 credit. It announces earnings today after market close. Metrics: Probability of Profit: 54% Max Profit: $110/contract Max Loss/Buying Power Effect: $190/contract Break Evens: 146.90/161.10 (Wide of expected move, both sides) Delta: .37 Theta: 6.08 Notes: The strikes were pesky on the call side. It was either go five-wide or 2 1/2 wide on the call side. I opted for going narrower, as long as I could keep my break evens outside the expected move. Will look to take profit at 50% max.
NYSE:IBM
by NaughtyPines