Stock / Symbol:Nasdaq 100 / NDX
Option Strategy: [private_monthly]bear call spread to iron condor[/private_monthly]
Trade entry date / price: May 16 / $3014.50
Price at trade post: $2979
Current Position:[private_monthly]
short -1 NDX Jun13 3175 call
long 1 NDX JUn13 3200 call
at a net credit of $1.28 per contract[/private_monthly]
Reasoning: We're upon on the bear call spread and with the market pulling back a bit, we're adding a bull put spread to complete an iron condor. This adjustment will shift our Greeks as follows: -1.1 delta to 0.35 , 3.7 theta to 8 , and -17 vega to -34. While adding the put spread does introduce downside risk to the trade, our overall risk is actually reduced. I've raised the upside stop and added a downside stop @ 2875
Trade Details:[private_monthly]
STO -1 NDX Jun13 2765 put
BTO 1 NDX JUn13 2740 put
for a min net credit of $1.15 per contract. (GTC order, limit order). I was filled at $1.15.
Requirements:
Cost/Proceeds ($115)
Option Requirement $2,500
Total Requirements $2,385
Estimated Commission $3
[/private_monthly]
Max Risk: $2260 (reduced from $2,375)
Max Reward: $240 or 9.2%[private_monthly] between $2765 and $3175[/private_monthly] by Jun 21[private_monthly]
Profit Range: [private_monthly]$2765 to $3175 by Jun 21[/private_monthly]
Suggested Upside stop: @ $3088
Suggested Downside stop: @$2875
[/private_monthly]
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