Stock / Symbol: SPDR S&P 500 ETF / SPY
Option Strategy: iron condor
Trade entry date: Nov 16
Price at trade entry: $135.85
Price at this adjustment: $141.00
Reasoning: With our Delta shifting from 4 to -42, I'm going to bring the delta at bit closer to zero by taking a profit on the put spread portion of the trade and rolling it to a higher strike spread. This adjustment will adjust our greeks to: a delta of -35, a positive theta of 6.24 and a negative vega of -25.68. Keeping the upside stop at 142.50 and raising the downside stop to 135.
Trade Adjustment Details:
[private_monthly]
BTC -3 SPY Dec12 128 puts
STC 3 SPY Dec12 125 puts
STO -3 SPY Dec12 132 puts
BTO 3 SPY Dec12 129 puts
for a min net credit of $0.08 per contract. The mid is currently at $0.09 (day order, limit order).
Max Risk: $771
Max Reward: $156 or 20% by Dec 21[private_monthly] between 132 - 144[/private_monthly]
Suggested Upside Stop @ $142.50
Suggested Downside Stop @ $135
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