Stock / Symbol:Nasdaq 100 / NDX
Option Strategy: [private_monthly]iron condor[/private_monthly]
Price at trade post: $2780
Reasoning: With 29 days till May expiration, I'm putting on an [private_monthly] iron condor[/private_monthly] on NDX. We've got an expected deviation of[private_monthly] +/- 127 points between now and May expiration; so I'm selling the 2925 calls and the 2650 puts. I'm covering each with strikes 25 pts further out of the money. [/private_monthly] The trade's overall greeks are: .50 delta, 14.5 theta, and -61 vega. The probability of success on this trade is 78%. If RUT trades [private_monthly]up to $2855 or down to $2705, we'll either stop out of the trade or adjust it.[/private_monthly]
Trade Details:[private_monthly]
STO -1 NDX May13 2925 call
BTO 1 NDX May13 2950 call
STO -1 NDX May13 2650 put
BTO 1 NDX May13 2625 put
for a min net credit of $5.25 per contract. (day order, limit order). The current mid is $5.40. If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds ($525.00)
Option Requirement $2,500
Total Requirements $1,975
Estimated Commission $6
[/private_monthly]
Max Risk: $1,975
Max Reward: $525 or 26%[private_monthly] between $2650 and $2925[/private_monthly] by May 17[private_monthly]
Profit Range: $2650 to $2925 by May 17
Suggested Upside stop: @ $2855
Suggested Downside stop: $2705
[/private_monthly]
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