Stock / Symbol: S&P500 Index / SPX
Option Strategy: [private_monthly]iron condor[/private_monthly]
Price at trade post: $1822
Reasoning: Opening up an Iron Condor here with SPX for January expiration. Working with a Standard deviation of[private_monthly] +/- 67[/private_monthly], and giving some more room to the downside. The greeks going into this trade are: -0.9 delta, 6.5 theta, and -42 vega. Setting an upside stop at [private_monthly]1855[/private_monthly] and a downside stop at [private_monthly]1770[/private_monthly]
Trade Details:
[private_monthly]
STO -2 SPX Jan14 1890 calls
BTO 2 SPX Jan14 1900 calls
STO -2 SPX Jan14 1720 puts
BTO 2 SPX Jan14 1710 puts
for a min net credit of 0.80 per contract. The mid is currently at $0.80 (day order, limit order).Note: if you're not filled today, it's ok to retry Monday
Requirements:
Cost/Proceeds ($160)
Option Requirement $2,000
Total Requirements $1,840
Estimated Commission $12
[/private_monthly]
Max Risk: $1,830
Max Reward: $160 or 8.7% @ [private_monthly]1720 - 1890[/private_monthly] by Jan 17
Profit Range: between $1719 and [private_monthly]$1891[/private_monthly]
Suggested Upside Stop @ $1855
Suggested Downside Stop @ $1770
