Stock / Symbol: Light Sweet Crude Oil Futures, Jan 2016 / CLF16 (/CLF6 in Think or Swim);
Option Strategy: [private_monthly]iron condor[/private_monthly];
Price at trade post: $40.40;
Reasoning: Putting a [private_monthly]iron condor[/private_monthly] on the Jan 2016 Crude oil futures that last trade on Dec 16th. This non-directional trade has a delta of 11.1, a positive theta of 16.6 and a negative vega of -10.2. The probability of success on this trade is 88%. If CLF16 trades [private_monthly]down to $36 or up to $46, we'll either stop out of the trade or adjust the position.[/private_monthly].
Trade Details:[private_monthly]
STO -1 /CLF6 1/1000 Jan16 35 put
BTO 1 /CLF6 1/1000 Jan16 33 put
STO -1 /CLF6 1/1000 Jan16 47 call
BTO 1 /CLF6 1/1000 Jan16 49 call
for a min net credit of $0.20 per contract (day order, limit order). The Current mid is $0.21
Requirements:
Cost/Proceeds ($200)
Total Requirements $1800
Estimated Commission $12
[/private_monthly]
Max Risk: $1800
Max Reward: $200 or 11% [private_monthly]between 35 - 47 by 16 Dec
Profit Range: $35 to $47 by 16 Dec
Suggested Downside stop: @ $36
Suggested Upside stop: @ $46
[/private_monthly]
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