Stock / Symbol: DOW Index ETF / DIA
Strategy: Iron Condor
Trade entry date / price: 21 Dec 2020 / $298.59
Price at this post: $300.84
Update / Reasoning: With DIA trading between the strikes of our short legs and the contracts expiring tomorrow, I'm going to enter in a closing order now in an attempt to capture a little more than 70% of the trades profit potential early. Most likely, we could let the position expire worthless for the full profit potential, but I'd like to remove the risk of a volatile day on Thursday . The position's current Greeks are: -4.1 Delta, 7.4 Theta, and -5.0 Vega. If our stop levels are hit, we will look to either exit the trade or adjust the position.
Trade Exit Order:
BTC 1 DIA 24Dec20 305 call
STC 1 DIA 24Dec20 308 call
BTC 1 DIA 24Dec20 290 put
STC 1 DIA 24Dec20 287 put
For a max net debit of $0.15 per contract (GTC order, limit order). The mid is currently at a debit of $0.17.
Analysis:
Max Risk: $245
Max Reward: $55 or 22% with DIA between $290 and $305 on Dec 24th
Profit Range: DIA between $290 and $305 on Dec 24th
Estimated Commission (round trip): $5.20
Suggested Upside Stop at: $305
Suggested Downside Stop at: $290
Anticipated Profit / Loss upon fill: $40 or 16% (pre commission)
