Stock / Symbol: SPDR S&P 500 ETF / SPY;
Option Strategy: [private_monthly] iron condor[/private_monthly];
Trade entry date: Jan 14;
Price at trade post: $146.70;
Price at this adjustment: $149.20
Current Position:
[private_monthly]
Short -6 SPY Feb13 152 calls
Long 6 SPY Feb13 155 calls
Short -6 SPY Feb13 138 puts
Long 6 SPY Feb13 135 puts
Reasoning: Upside stop hit, time to adjust. Current greeks are: -86 delta, 9.1 theta, and -50 vega. To adjust, I'm going to [/private_monthly] buy back half of the short calls. This adjustment shifts the position's greeks to: -30 Delta, 5.1 Theta, and -17 Vega.[/private_monthly] With this adjustment, let's raise the upside stop to[private_monthly] $151.80. [/private_monthly]
Adjustment Details:
[private_monthly]
BTC -3 SPY Feb13 152 calls
for a max net debit of $0.44 per contract. The ask is currently at $0.42 (day order, limit order).
Max Risk: $1,700
Max Reward: $90 or 5.3% by Feb 15[private_monthly] between 138 - 152
Suggested Upside Stop @ $151.80
Suggested Downside Stop @ $141.50
[/private_monthly]
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