Stock / Symbol: SPDR S&P 500 ETF / SPY
Option Strategy: [private_monthly] iron condor[/private_monthly]
Price at trade post: $146
Reasoning: With 30 days left till November expiration, we're putting on an[private_monthly] Iron Condor on SPY to fit between the current standard deviation calculation of +/- 6.29 from its current price. Our[private_monthly] Iron Condor[/private_monthly] currently has a delta of .70, a positive theta of 5.79 and a negative vega of -15.36.[private_monthly] The calls we're selling currently have a .11 delta and our short puts have a -.16 delta, giving this trade an 83% chance of success. If SPY hits either our upside stop at 150.50 or downside stop at 140.50, we'll adjust the trade or exit it. [/private_monthly]
Trade Details:
[private_monthly]
STO -4 SPY Nov12 152 calls
BTO 4 SPY Nov12 154 calls
STO -4 SPY Nov12 139 puts
BTO 4 SPY Nov12 137 puts
for a min net credit of $0.30 per contract. The mid is currently at $0.33 (day order, limit order).
Requirements:
Cost/Proceeds ($120)
Option Requirement $800
Total Requirements $680
Estimated Commission $24
[/private_monthly]
Max Risk: $680
Max Reward: $120 or 17.6% by Nov 16[private_monthly] between 139 - 152
Suggested Upside Stop @ $150.50
Suggested Downside Stop @ $140.50
[/private_monthly]
Non-members, click here for access
