Stock / Symbol:Nasdaq 100 / NDX
Option Strategy: [private_monthly]iron condor[/private_monthly]
Price at trade post: $3085
Reasoning: I'm putting on an [private_monthly] iron condor[/private_monthly] on NDX. We've got an expected deviation of[private_monthly] +/- 140 points between now and Aug expiration. I'm accounting for a deviation range of 140 to the upside and 265 to the downside. [/private_monthly] The trade's greeks are: -2 delta, 12.2 theta, and -57 vega. The probability of success on this trade is 91%.
Trade Details:[private_monthly]
STO -1 NDX Aug13 3225 call
BTO 1 NDX Aug13 3250 call
STO -1 NDX Aug13 2820 put
BTO 1 NDX Aug13 2795 put
for a min net credit of $1.92 per contract. (day order, limit order). The current mid is $2.35. If not filled on Thursday, it's ok to try again Friday.
Requirements:
Cost/Proceeds ($192)
Option Requirement $2,500
Total Requirements $2,308
Estimated Commission $6
[/private_monthly]
Max Risk: $2,308
Max Reward: $192 or 8.3%[private_monthly] between $2675 and $3175[/private_monthly] by Jul 19[private_monthly]
Profit Range: [private_monthly]$2820 to $3225 Aug 16[/private_monthly]
Suggested Upside stop: @ $3136
Suggested Downside stop: @ $2944
[/private_monthly]
Non-members, click here for access
