Stock / Symbol: Nasdaq 100 / NDX
Option Strategy: [private_monthly]iron condor[/private_monthly]
Price at trade post: $2795
Reasoning: With 34 days till April expiration, I'm putting on a [private_monthly]Iron Condor on NDX. With an expected deviation of 100 points between now and April expiration, I'm selling the 2900 calls and the 2675 puts.[/private_monthly] The trade greeks are: -3 delta(neutral), 11.2 theta, and -76 vega. The probability of success on this trade is 83%. If NDX trades down quickly to 2750, we'll look to exit the trade for a quick gain. Setting upside stop at 2850 and downside stop at 2700 to either adjust or exit the trade.
Trade Details:[private_monthly]
STO -1 NDX Apr13 2900 call
BTO 1 NDX Apr13 2925 call
STO -1 NDX Apr13 2675 put
BTO 1 NDX Apr13 2660 put
for a min net credit of $3.25 per contract (day order, limit order). The mid is current at 3.85, so try for the mid less 0.15. If not filled today, ok to try again Monday.
Requirements:
Cost/Proceeds ($360)
Option Requirement $2,500
Total Requirements $2,140
Estimated Commission $6
[/private_monthly]
Max Risk: $2140
Max Reward: $360 or 16.8%[private_monthly] between $2675 and $2900[/private_monthly] by Apr 19[private_monthly]
Profit Range: $2672 to $2902 by Apr 19
Suggested Upside stop: @ $2850
Suggested Downside stop: @ $2700
[/private_monthly]
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