Stock / Symbol: S&P500 Index / SPX
Option Strategy: [private_monthly]reverse iron condor / double vertical [/private_monthly]
Price at trade post: $1993
Reasoning: Normally, I'd be putting on an Iron Condor here on SPX. However, as the market has been quite volatile lately, with the VIX relatively low, and without knowing how the market will react to tomorrow's Fed announcement, I'm going with a reverse iron condor / double vertical on SPX using October's option expiration. I'm working with a Standard deviation of[private_monthly] +/- 125[/private_monthly] by Oct 16th. The greeks going into this trade are: -0.9 delta, 8.4 theta, and -29 vega.
Trade Details:[private_monthly]
BTO 1 SPX Oct15 2110 call
STO -1 SPX Oct15 2120 call
BTO 1 SPX Oct15 1860 put
STO -1 SPX Oct15 1850 put
for a max net debit of 2.00 per contract. The mid is currently at $1.40 (day order, limit order). Try for the mid +0.20. It's ok to try again tomorrow if not filled today.
Requirements:
Cost/Proceeds $200
Option Requirement $200
Total Requirements $200
Estimated Commission $6
[/private_monthly]
Max Risk: $200
Max Reward: $800 or 400% under [private_monthly]1850 and over 2120[/private_monthly] by Oct 16th
Profit Range: [private_monthly]under $1858 and over $2112[/private_monthly] by Oct 16th
Suggested Upside Stop: NA
Suggested Downside Stop: NA
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