💡 $357 profit with 72% PoP STRANGLE - #1 trade in my challangeTrade Overview:
Initiated my first options trade for the annual challenge on January 2nd with an IWM strangle. Observing high IVR in the index, I capitalized on the recent VIX spike to enter the 45DTE 212/188 strangle for 3.57cr.
Trade Management:
Rolling Strategy: Will roll legs as needed before expiration if price diverges.
Loss Management: With a FWB:12K account, I'm capping floating loss at $200.
Closing Strategy: Targeting to close around 21DTE.
Trade Details:
Symbol: IWM
Option Type: Strangle 45DTE
Entry Date: January 2, 2024
Entry Price: 3.57cr
Required BP: $1681
Max Profit: $357 (20% of capital)
PoP: 72%
Positions:
IWM Feb 16, 2024 212.00 CALL - Sell | Price: 1.76 | Qty: 1 | R. PnL: 0 | Commission: 1.251 | Fees: 0
IWM Feb 16, 2024 188.00 PUT - Sell | Price: 1.81 | Qty: 1 | R. PnL: 0 | Commission: 1.2511 | Fees: 0
Key Metrics:
Tasty IVR: 42 (High)
Breakevens: 184/215
