Stock / Symbol: SPDR S&P 500 ETF / SPY
Option Strategy: [private_monthly] iron condor[/private_monthly]
Price at trade post: $135.85
Reasoning: With 35 days left till December expiration, we're putting on an[private_monthly] Iron Condor on SPY to fit between the current standard deviation calculation of +/- 8 from its current price. Our[private_monthly] Iron Condor[/private_monthly] currently has a delta of 4, a positive theta of 3.90 and a negative vega of -19.56.[private_monthly] This trade has a 81% probability of success. If SPY hits either our upside stop at 142.50 or downside stop at 130, we'll adjust the trade or exit it. [/private_monthly]
Trade Details:
[private_monthly]
STO -3 SPY Dec12 144 calls
BTO 3 SPY Dec12 147 calls
STO -3 SPY Dec12 128 puts
BTO 3 SPY Dec12 125 puts
for a min net credit of $0.43 per contract. The mid is currently at $0.45 (day order, limit order). If not filled today, ok to try again on Monday.
Requirements:
Cost/Proceeds ($129)
Option Requirement $900
Total Requirements $771
Estimated Commission $18
[/private_monthly]
Max Risk: $771
Max Reward: $129 or 16.7% by Dec 21[private_monthly] between 128 - 144
Suggested Upside Stop @ $142.50
Suggested Downside Stop @ $130
[/private_monthly]
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