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SPX at 2810, about +105 since entry.
We’re going to make an adjustment similar to what we did on 7/6 – https://mrtoptick.com/forums/topic/spx-31aug-iron-condor/#post-12878
We’re going to Buy To Close the second round of put spreads and sell another round at higher strikes. This will bring in an additional credit that will be used IF/WHEN we have to adjust our short Call spreads.
BUY TO CLOSE 2600/2590
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 31 AUG 18 2600 Put Sell To Close SPX 31 AUG 18 2590 Put Total Debit: 0.40 SELL TO OPEN 2690/2680
Order Ticket Type Asset Duration Strike C/P Sell To Open SPX 31 AUG 18 2690 Put Buy To Open SPX 31 AUG 18 2680 Put Total Credit: 0.90 Risk Profile:
Trade Greeks:
SPX at 2807
VIX at 12.37
I’m looking to sell an Iron Condor in 21SEP expiration cycle with 65 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:
2650/2640 Bull Put spread
2935/2945 Bear Call spreadOrder Ticket Type Asset Duration Strike C/P Buy To Open SPX 21 SEP 18 2945 Call Sell To Open SPX 21 SEP 18 2935 Call Sell To Open SPX 21 SEP 18 2650 Put Buy To Open SPX 21 SEP 18 2640 Put Total Credit: 1.70 Risk Management: I will use OTM options to hedge this Iron Condor when 2935 Call’s delta reaches 20 and 2650 Put’s delta reaches 25.
Price levels for adjustments: 2850 and 2740
Profit Target: 50-80% credit
MAL: -25% RORRisk Profile:
RUT is at 1698 and it looks like it’s going to test the highs of 1710. We’re going to re-balance the greeks here. Right now this position is about -17 delta and +43 theta. Rolling upper long puts of Tier 2 down 10 points will take Delta to about neutral:
Order Ticket Type Asset Duration Strike C/P Sell To Close RUT 17 AUG 18 1720 Put Buy To Open RUT 17 AUG 18 1710 Put Total Credit: 5.60 Risk Profile:
We’re going to try this Iron Condor again, changing the strike to where we’d receive about .85c credit for each spread. Right now 2930/2940 call spread is showing 0.80c credit while 2655/2645 put spread is showing 0.90c credit. Total credit is around 1.70
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 21 SEP 18 2940 Call Sell To Open SPX 21 SEP 18 2930 Call Sell To Open SPX 21 SEP 18 2655 Put Buy To Open SPX 21 SEP 18 2645 Put Total Credit: 1.70 Big banks have reported earnings and we’re seeing strength overall in the sector.
We’re looking to put on a bullish trade in WFC. This strategy is also known as Poor Man’s Covered Call. We’re buying a longer dated call that is around 70 delta and selling a shorted dated call around 50 delta. This trade is NET Delta positive and theta positive. We get positive theta from the options that are being sold as they have less time to expiration and therefore decay a lot faster than the options that are being bought. Here’s the chart of WFC:
Order Ticket Type Asset Duration Strike C/P Sell To Open WFC 31 AUG 18 58 Call Buy To Open WFC 19 OCT 18 55 Call Total Debit: 2.70 Risk Profile:
We’re looking to make about 15% ROR and we dont want to lose much more than what we’re looking to make.
SPX at 2822.
We’re going to roll the upper long put (2770) down 10 points. This will add positive delta and increase theta. It’ll also increase short Vega, but as time starts to run down Vega starts to matter less and Gamma will start to kick in. Here’s how the greeks will change:
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 07 SEP 18 2770 Put Buy To Open SPX 07 SEP 18 2760 Put Total Credit: 1.80
Risk Profile:
NOTE: My comments from the chat below
This adjustment is the same as selling 2770/2760 bull put spread. It’ll raise the right side of the graph, add a bit more positive delta, positive theta all in exchange for a little more risk on the downside. How much risk? If we’re selling a 10pt wide for 1.80 credit then the margin is 8.20 (per 1 spread), so that’s 820 additional per 1 lot.
RUT is at 1677. We’re going to re-balance NET delta by rolling 1610 Put up 20 points to 1630. This adjustment is going to reduce NET positive delta and cut a little bit of theta while reducing downside risk by 35%
Here’s how the GREEKs will change:
Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 17 AUG 18 1630 Put Sell To Close RUT 17 AUG 18 1610 Put Total Debit: 2.80 Risk Profile:
SPX at 2825. On July 9th we bought an OTM call to cut NET delta from -25 to -10. Here’s the adjustment post
It’s been almost a month and a move higher is happening but very slow. With this much time going by, our delta hedge has decay a bit and now NET delta of this Iron Condor is around -20. We want to bring the NET delta back to -10. This means we need to ADD 10 delta to this trade. We’re going to pick up (1) 10 delta call in the 14SEP expiration cycle with 51 days to expiration. This is how the GREEKs will change:
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 14 SEP 18 2930 Call Total Debit: 4.10 Risk Profile:
NOTE: There are 37 days until expiration. We still have time to roll up our short call spread and remove all hedges. We want to see how SPX trades in the next week before making further adjustments.
I’m going to put out an order to take this trade off for a quick profit. Our target was about 15% ROR with 38 days to expiration. As of right now, this position is showing about 10% ROR in 4 days.
Risk Profile:
Order Ticket Type Asset Duration Strike C/P Buy To Close WFC 31 AUG 18 58 Call Sell To Close WFC 19 OCT 18 55 Call Total Credit: 2.95 RUT is showing a significant weakness today, trading around 1665.
We’re going to roll up our long puts on the downside from 1630 up to 1650.
Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 17 AUG 18 1650 Put Sell To Close RUT 17 AUG 18 1630 Put Total Debit: 5.00 Risk Profile:
We’re going to remove almost all of the risk out of this trade by:
1. Rolling 1690 put up to 1710
2. Rolling 1660 put down to 1640This is an all put condor trade
Order Ticket Type Asset Duration Strike C/P Sell To Close RUT 17 AUG 18 1710 Put Buy To Close RUT 17 AUG 18 1690 Put Buy To Close RUT 17 AUG 18 1660 Put Sell To Close RUT 17 AUG 18 1640 Put Total Credit: 8.20 Risk Profile:
We’re going to take the rest of this trade off here.
Order Ticket Type Asset Duration Strike C/P Sell To Close RUT 17 AUG 18 1700 Put Buy To Close RUT 17 AUG 18 1690 Put Buy To Close RUT 17 AUG 18 1660 Put Sell To Close RUT 17 AUG 18 1650 Put Total Credit: 3.30 Risk Profile:
We’re going to put on an EIP trade in 28SEP expiration with about 58 days to expiration.
We’re using tiered entry for this strategy.Tier 1. 1600/1650/1690 Put butterfly
Tier 2. 1620/1670/1710 Put butterfly (RUT trading above 1690)
Tier 3. TBDWe’re going to manage downside risk WHEN/IF RUT trades down to 1620.
Risk Profile: 
NOTE: This trade fully scaled will require about 5K of margin per 1 lot.
Planned capital: $10,000
Profit Target: 15% of PC
MAL: 20% of PCOrder Ticket Type Asset Duration Strike C/P BTO RUT 28 SEP 18 1690 Put STO X2 RUT 28 SEP 18 1650 Put BTO RUT 28 SEP 18 1600 Put Total Debit: 4.20 SPX at 2860
Our short call delta reached 20 and it’s time to make an adjustment. We’re going to use options in the 28SEP expiration to cut NET delta by 2/3.
Right now NET delta of this Iron Condor is around -25. We’re going to buy (2) 8 delta calls and this will reduce our NET delta from -26 to -10
Risk Profile:
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 28SEP 18 2990 Call Total Debit: 3.30 SPX at 2858
We’re going to buy back 2655/2645 put spread and look to sell another put spread to bring in additional credit
Risk Profile:
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 21SEP 18 2655 Put Sell To Close SPX 21SEP 18 2645 Put Total Debit: 0.35
