Stock / Symbol: SPDR S&P 500 ETF / SPY;
Option Strategy: [private_monthly] iron condor[/private_monthly];
Price at trade post: $146.70;
Reasoning: With 32 days left till February expiration, we're putting on an[private_monthly] Iron Condor on SPY to fit between the current standard deviation calculation of +/- 6 from its current price, with a slight downside bias. Our[private_monthly] Iron Condor[/private_monthly] currently has a delta of -15, a positive theta of 9.8 and a negative vega of -26.[private_monthly] This trade has a 87% probability of success. If SPY hits either our upside stop at 149 or downside stop at 141.50, we'll adjust the trade or exit it. [/private_monthly]
Trade Details:
[private_monthly]
STO -6 SPY Feb13 152 calls
BTO 6 SPY Feb13 155 calls
STO -6 SPY Feb13 138 puts
BTO 6 SPY Feb13 135 puts
for a min net credit of $0.36 per contract. The mid is currently at $0.39 (day order, limit order). If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds ($216)
Option Requirement $1,800
Total Requirements $1,584
Estimated Commission $36
[/private_monthly]
Max Risk: $1,584
Max Reward: $216 or 13.6% by Feb 15[private_monthly] between 138 - 152
Suggested Upside Stop @ $149
Suggested Downside Stop @ $141.50
[/private_monthly]
Non-members, click here for access
