Stock / Symbol: Facebook / FB
Strategy: Iron Condor
Trade entry date / price: 19 Aug 2020 / $261.80
Price at this post: $269.01
Reasoning: As long as FB finishes the day between $260 and $270, we could allow the position to expire worthless and realize the trade's full profit potential. However, we're going to see if we can close out the trade prior to the day's close in order to remove the risk that FB finishes the day either under $260 or over $270.
Trade Exit Details:
BTC 1 FB 21Aug20 270 call
STC 1 FB 21Aug20 272.5 call
BTC 1 FB 21Aug20 260 put
STC 1 FB 21Aug20 257.50 put
For a max net debit of $0.50 per contract (day order, limit order). The mid is currently at a debit of $0.83. I have not yet been filled.
Analysis:
Max Risk: $160
Max Reward: $90 or 56% with FB between $260.50 and $269.30 on Aug 21st
Profit Range: FB between $259.30 and $270.70 on Aug 21st
Estimated Commission (round trip): $12
Upside stop @ $271
Downside stop @ $259
Expected Profit / Loss upon fill: $40 or 25% (pre-commission)
