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SPX trading at 2721.
2815 Call’s delta is around 20, it’s time to make an adjustment.
NET delta of this Iron Condor is around -21. I am going to buy a Call with delta +12 and that will take my NET delta from -21 to -9.Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 29 JUN 18 2840 Call Total Debit: $6.10 Risk Profile Before:
Risk Profile After:
We’re going to Buy To Close 2490/2480 Bull Put spread here. It is currently trading between 0.35 and 0.40 cents and we’re not expecting much more decay to come from this spread.
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 29 JUN 18 2490 Put Sell To Close SPX 29 JUN 18 2480 Put Total Debit: $0.35 We will look to sell another round of put spreads which will bring in additional credit and that will help pay for any further adjustment we may need to make on the upside.
We’re going to put on an EIP trade in 20JUL expiration with about 65 days to expiration.
We’re using tiered entry for this strategy.Tier 1. 1540/1590/1630 Put butterfly
Tier 2. 1570/1620/1660 Put butterfly (RUT trading above 1630)
Tier 3. TBDWe’re going to manage downside risk WHEN/IF RUT trades down to 1550.
Order Ticket Type Asset Duration Strike C/P BTO RUT 20 JUL 18 1630 Put STO X2 RUT 20 JUL 18 1590 Put BTO RUT 20 JUL 18 1540 Put Total Debit: $5.20 Risk Profile:
SPX at 2734
We used an OTM call to reduce out NET delta from -20 to -9 (https://mrtoptick.com/forums/topic/spx-29jun-iron-condor/#post-3811)
Since then, we took off 2490/2480 Bull Put spread. Right now NET delta of this position is back to around -20. We want to cut that by 1/2. We’re going to add a Call with a delta around +10. We’re going to add (1) 2840 call here.Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 29 JUN 18 2840 Call Total Debit: $3.20 P/L graph before:
P/L graph after:
We’re going to exit this trade for a small gain.
We’re going to BUY TO CLOSE 2815/2825 Bear Calls spread:
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 29 JUN 18 2825 Call Buy To Close SPX 29 JUN 18 2815 Call Total Debit: $0.35 We’re going to SELL TO CLOSE 2840 Call:
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 29 JUN 18 2840 Call Total Credit: $0.70 Risk Profile:
We’re going to add Tier 2 to this trade.
Short strike of T2 will be 30 points above short strike of T1. The wings of T2 are going to be 50 points below short strike and 20 points above the short strike. This is what new structure will look like:
Buy (1) 1570 Put
Sell (2) 1620 Put
Buy (1) 1640 Put
Order Ticket Type Asset Duration Strike C/P BTO RUT 20 JUL 18 1640 Put STO X2 RUT 20 JUL 18 1620 Put BTO RUT 20 JUL 18 1570 Put Total Credit: $3.50 SPX at 2726
VIX at 14.91I’m looking to sell an Iron Condor in 27JUL expiration cycle with 57 days to expiration.
I am looking to sell a Bear Call spread that pays close to .85c credit and a Bull Put spread that pays around .85c as well, for a total credit of 1.70 or higher. I want to keep my credit fairly balanced between both spreads. For example, I don’t want to see 1.20 credit for one side and .50c for the other. I want to keep credits as close to .80-.90 per side.
I’m selling:
2560/2550 Bull Put spread
2860/2870 Bear Call spreadOrder Ticket Type Asset Duration Strike C/P Buy To Open SPX 27 JUL 18 2870 Call Sell To Open SPX 27 JUL 18 2860 Call Sell To Open SPX 27 JUL 18 2560 Put Buy To Open SPX 27 JUL 18 2550 Put Total Credit: $1.70 Risk Management: I will use OTM options to hedge this Iron Condor when 2860 Call’s delta reaches 20 and 2560 Put’s delta reaches 25.
Price levels for adjustments: 2760 and 2650Risk Profile:
We are going to try this trade again.
2540/2530 Bull Put spread
2840/2850 Bear Call spreadTotal Credit: 1.75-1.85
SPX at 2748
VIX at 12.56I’m looking to sell an Iron Condor in 31JUL expiration cycle with 55 days to expiration.
I am looking to sell a Bear Call spread that pays close to .85c credit and a Bull Put spread that pays around .85c as well, for a total credit of 1.70 or higher. I want to keep my credit fairly balanced between both spreads. For example, I don’t want to see 1.20 credit for one side and .50c for the other. I want to keep credits as close to .80-.90 per side.
I’m selling:
2600/2590 Bull Put spread
2865/2875 Bear Call spreadOrder Ticket Type Asset Duration Strike C/P Buy To Open SPX 31 JUL 18 2875 Call Sell To Open SPX 31 JUL 18 2865 Call Sell To Open SPX 31 JUL 18 2600 Put Buy To Open SPX 31 JUL 18 2590 Put Total Credit: $1.75 Risk Management: I will use OTM options to hedge this Iron Condor when 2865 Call’s delta reaches 20 and 2600 Put’s delta reaches 25.
Price levels for adjustments: 2780 and 2675Risk Profile:
SPX at 2789.
Our short call’s delta reached 20 and it’s time to make an adjustment. We’re going to look to BUY TO OPEN (2) 8 delta calls, that will cut NET delta from -25 to -9
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 31 JUL 18 2910 Call Total Debit: $3.20 Risk profile:
We’re going to make an adjustment to this trade by closing out a butterfly.
Order Ticket Type Asset Duration Strike C/P STC RUT 20 JUL 18 1640 Put BTC X2 RUT 20 JUL 18 1590 Put STC RUT 20 JUL 18 1540 Put Total Credit: $3.00 Risk Profile:
This leaves (1) Broken Wing butterfly with 38 days to expiration. As long as RUT trades above 1630, the remaining position should expire for full potential profit, around 5%.
We’re going to add another Broken Wing butterfly, 20 points above short strikes of the current position. The current butterfly is centered around 1620, so we’ll use 1640 strike as the body of our butterfly and we’ll use a 50 point wing on the downside and a 30 point wing on the upside.
We’re:
Buying (1) 1590 put
Selling (2) 1640 put
Buying (1) 1670 PutOrder Ticket Type Asset Duration Strike C/P BTO RUT 20 JUL 18 1670 Put STO X2 RUT 20 JUL 18 1640 Put BTO RUT 20 JUL 18 1590 Put Total Debit: $1.80 Risk Profile:
We’re going to free up some margin and lighten up the downside risk into strength here. Rolling 1570 put up to 1590 will free up about 2K of margin and smooth out the T+0 line on the downside.
Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 20 JUL 18 1590 Put Sell To Close RUT 20 JUL 18 1570 Put Total Debit: $1.20 Risk Profile:
NOTE: This will free up the margin we’ll need when rolling upper long puts lower to raise the right side of the graph later in the trade.
We’re going to put on an EIP trade in 18AUG expiration with about 63 days to expiration.
We’re using tiered entry for this strategy.Tier 1. 1610/1660/1700 Put butterfly
Tier 2. 1630/1680/1720 Put butterfly (RUT trading above 1700)
Tier 3. TBDWe’re going to manage downside risk WHEN/IF RUT trades down to 1625.
Order Ticket Type Asset Duration Strike C/P BTO RUT 18 AUG 18 1700 Put STO X2 RUT 18 AUG 18 1660 Put BTO RUT 18 AUG 18 1610 Put Total Debit: $5.30 Risk Profile:
NOTE: This trade fully scaled will require about 5K of margin per 1 lot.
Planned capital: $5,000
Profit Target: 20% of PC
MAL: 20% of PCRUT is trading at a new ATH today and about 100 points since we entered this trade. We’re going to make an adjustment here in 2 steps.
1. Sell To Close 1590/1620/1630 Put Butterfly
Order Ticket Type Asset Duration Strike C/P STC RUT 20 JUL 18 1630 Put BTC X2 RUT 20 JUL 18 1620 Put STC RUT 20 JUL 18 1590 Put Total Debit: $1.00 2. Buy To Open 1630/1680/1730 Put Butterfly
Order Ticket Type Asset Duration Strike C/P BTO RUT 20 JUL 18 1730 Put STO X2 RUT 20 JUL 18 1680 Put BTO RUT 20 JUL 18 1630 Put Total Debit: $12.30 Risk Profile:
