Stock / Symbol: SPDR S&P 500 ETF / SPY;
Option Strategy: [private_monthly] iron condor[/private_monthly];
Price at trade post: $202.15;
Reasoning: Putting on an[private_monthly] Iron Condor[/private_monthly] on SPY with January expiring options, with less risk to the upside. This trade currently has a delta of 2.2, a positive theta of 1.4 and a negative vega of -5.7. This trade has a 81% probability of success. If SPY hits either our upside stop at 215 or downside stop at 192, we'll adjust the trade or exit it.
Trade Details:
[private_monthly]
STO -2 SPY Jan16 215 calls
BTO 2 SPY Jan16 216 calls
STO -2 SPY Jan16 187 puts
BTO 2 SPY Jan16 185 puts
for a min net credit of $0.26 per contract. The mid is currently at $0.28 (GTC order, limit order). If not filled today, ok to try again tomorrow.
Requirements:
Cost/Proceeds ($52)
Option Requirement $400
Total Requirements $348
Estimated Commission $12
[/private_monthly]
Max Risk: $348
Max Reward: $52 or 15% by 15 Jan[private_monthly] between 187 - 215
Suggested Upside Stop @ $215
Suggested Downside Stop @ $192
[/private_monthly]
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