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This trade is currently at 30% of max profit in 5 days. If possible to close this Iron Condor for 1.20 debit – that’s a good early exit and we’ll look to re-establish a new Iron Condor in the same expiration cycle.
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 15 JUN 18 2870 Put Buy To Close SPX 15 JUN 18 2860 Put Buy To Close SPX 15 JUN 18 2385 Put Sell To Close SPX 15 JUN 18 2375 Put Total Debit: $1.20 Risk Profile:
We’re going to close out the remaining put spread here and look to establish a new position. Google has earnings coming up, so there’s an event-based risk.
Order Ticket Type Asset Duration Strike C/P Buy To Close GOOGL 20 APR 18 1095 Put Sell To Close GOOGL 18 MAY 18 1110 Put Total Credit: $13.50-$14.00 We’re going to make our first adjustment. We’re going to roll our front month short option from 18MAY to 01JUN.
Order Ticket Type Asset Duration Strike C/P Buy To Close LULU 18 MAY 18 90 Put Sell To Open LULU 01 JUN 18 90 Put Total Credit: $1.70 This will bring in additional credit and reduce overall risk in the trade. We’ll also look to add another Put Calendar over the next 7 days.
Risk Profile:
RUT has rallied almost 100 points in the last couple weeks or around 6.7%
It’s not impossible for small caps to rally another 7% in the next few weeks, but odds are pretty low.Chart:
We’re looking to put on an Income Calendar with 30 days to expiration. We’re selling options in 18MAY (30 DTE) cycle and buying options in 31MAY (45DTE).
We’re looking to scale into this trade, meaning that as RUT trades below 1550 or above 1610, we’re going to look to add another round of ATM calendars. Our profit target is around 15% ROR and our MAL is around 20% of margin.Order Ticket Type Asset Duration Strike C/P Sell To Open RUT 18 MAY 18 1580 Put Buy To Open RUT 31 MAY 18 1580 Put Total Debit: $5.20 Risk Profile:
SPX at 2685
VIX at 16.18I’m looking to sell an Iron Condor in JUN expiration cycle with 56 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:
2835/2845 Call spread
2490/2500 Put spreadOrder Ticket Type Asset Duration Strike C/P Buy To Open SPX 15 JUN 18 2845 Call Sell To Open SPX 15 JUN 18 2835 Call Sell To Open SPX 15 JUN 18 2500 Put Buy To Open SPX 15 JUN 18 2490 Put Total Credit: $1.80 Risk Management: I will use OTM options to hedge this Iron Condor when 2835 Call’s delta reaches 20 and 2500 Put’s delta reaches 25.
Price levels for adjustments: 2725 and 2600Risk Profile:
We’re going to look to add another round of Put Calendars centered at 1540 strike (same expirations)
Order Ticket Type Asset Duration Strike C/P Sell To Open RUT 18 MAY 18 1540 Put Buy To Open RUT 31 MAY 18 1540 Put Total Debit: $5.50 Risk Profile:
We’re going to look to leg out of the Bear Call spread here.
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 15 JUN 18 2845 Call Buy To Close SPX 15 JUN 18 2835 Call Total Debit: $0.35 Risk Profile:
We werent able to roll 18MAY 90P to 1JUN 90P for the price we were looking for. We’re going to take a different approach and take a bullish outlook on the company near term.
We’re looking to BUY TO CLOSE 18MAY 90 Put (current mid price around .60c) AND we’re looking to SELL TO OPEN 01JUN 95 Put (current mid price around $3.50)
Here’s what the Risk Profile looks like
Before:
After:
Order Ticket Type Asset Duration Strike C/P Buy To Close LULU 18 MAY 18 90 PUT Sell To Open LULU 01 JUN 18 95 PUT Total Credit: $2.75 – $2.90 MCD reported earnings and the stock gapped up to 165. We’re going to start to unwind this position here.
Order Ticket Type Asset Duration Strike C/P Buy To Close MCD 18 MAY 18 160 Call Sell To Close MCD 15 JUN 18 155 Call Total Credit: $4.85 Risk Profile:
We’re going to roll 1480 put +10 points to 1490. This would be the same as buying a 1490/1480 put debit spread.
This will reduce downside risk, cut NET delta and remain risk free trade on the upside.Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 15 JUN 18 1490 Put Sell To Close RUT 15 JUN 18 1480 Put Total Debit: $1.60 Risk Profile:
We’re going to unwind this position by:
Sell To Close 18MAY/31MAY 1540 Put Calendar
Order Ticket Type Asset Duration Strike C/P Buy To Close RUT 18 MAY 18 1540 Put Sell To Close RUT 31 MAY 18 1540 Put Total Credit: $4.9 Sell To Close 18MAY/31MAY 1580 Put Calendar
Order Ticket Type Asset Duration Strike C/P Buy To Close RUT 18 MAY 18 1580 Put Sell To Close RUT 31 MAY 18 1580 Put Total Credit: $6.15 Risk Profile:
SPX at 2667
VIX at 15.03I’m looking to sell an Iron Condor in 29JUN expiration cycle with 53 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:
2815/2825 Call spread
2490/2480 Put spreadOrder Ticket Type Asset Duration Strike C/P Buy To Open SPX 29 JUN 18 2825 Call Sell To Open SPX 29 JUN 18 2815 Call Sell To Open SPX 29 JUN 18 2490 Put Buy To Open SPX 29 JUN 18 2480 Put Total Credit: $1.75 Risk Management: I will use OTM options to hedge this Iron Condor when 2815 Call’s delta reaches 20 and 2490 Put’s delta reaches 25.
Price levels for adjustments: 2710 and 2585Risk Profile:
We’re going to close out the rest of this trade.
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 15 JUN 18 2500 Put Sell To Close SPX 15 JUN 18 2490 Put Total Debit: $0.60 We are going to make a slight adjustment to this trade.
RUT looks like it is going to break 1600 and potentially run to an ATH. Instead of adding Tier 2 and 3, I’m going to roll 1560 Put down 15 points. This will add positive delta and increase theta.Order Ticket Type Asset Duration Strike C/P Sell To Close RUT 15 JUN 18 1560 Put Buy To Open RUT 15 JUN 18 1545 Put Total Credit: 3 Risk Profile:
We are going to make a slight adjustment to this trade.
RUT looks like it is going to break 1600 and potentially run to an ATH. Instead of adding Tier 2 and 3, I’m going to roll 1560 Put down 15 points. This will add positive delta and increase theta.Order Ticket Type Asset Duration Strike C/P Sell To Close RUT 15 JUN 18 1560 Put Buy To Open RUT 15 JUN 18 1545 Put Total Credit: $3.00 Risk Profile:
