Stock / Symbol: Facebook / FB
Strategy: Reverse Iron Condor
Trade entry date / price: 27 Nov 2020 / $278.50
Price at this post: $288
Update / Reasoning: As anticipated, FB's implied volatility has risen a bit since our entry, helping to make this position profitable (so far). Going to enter in our exit order here, looking to capture a quick 6% gain. To get filled, we'll either need the price to shoot up another 12 points, go down 30 points, or have a further rise in implied volatility. The current Greeks on this Reverse Iron Condor position are: -1.9 Delta, -2.0 Theta, and 5.2 Vega.
Trade Exit Order:
STC 1 FB 15Jan21 285 call
BTC 1 FB 15Jan21 295 call
STC 1 FB 15Jan21 275 put
BTC 1 FB 15Jan21 265 put
For a min net credit of $7.95 per contract (GTC order, limit order). The mid is currently at a credit of $7.75.
Analysis:
Max Risk: $750
Max Reward: $250 or 33% with FB either under $265 (or) over $295 by Jan 21st
Profit Range: FB at/under $267.25 (or) at/over $292.50 at market close on Jan 21st
Estimated Commission (round trip): $5.20
Suggested Stop: position down ($50) or more
Anticipated Profit / Loss upon fill: $45 or 6% (pre commission)
