Stock / Symbol: Facebook / FB
Strategy: Reverse Iron Condor
Trade entry date / price: 27 Nov 2020 / $278.50
Price at this post: $288
Update / Reasoning: Like with the GOOGL trade, this position was structured to work on either a price move (up or down) of at least 7% or a significant increase in volatility. Just like with GOOGL, FB just hasn't cooperated. Going to attempt to exit the trade here for just better than break even. The current Greeks on this position are: 1.0 Delta, -2.4 Theta, and 6.1 Vega.
Trade Exit Order Adjustment:
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 $7.55 per contract (GTC order, limit order). The mid is currently at a credit of $7.45.
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: $5 or 0% (pre commission)
