Stock / Symbol: iShares Russell 2000 ETF / IWM
Option Strategy: Iron Condor
Trade entry date / price: 30 Aug 2021 / $226.43
Trade exit date / price: 01 Sep 2021 / $226.40
Recap: With IWM essentially at the same level as it was upon entry, I was able to close out the position just 2 days into the trade, and net a 30% return. The net position Greeks are currently : 2.0 Delta, -6.0 Gama, 19.6 Theta and -3.6 Vega.
Position:
Short 1 IWM 3Sep21 229 call
Long 1 IWM 3Sep21 231 call
Short 1 IWM 3Sep21 223 put
Long 1 IWM 3Sep21 221 put
Entered for a net credit of $0.85 per contract on Aug 30th and exited on Sep 1st for a net debit of $0.50 per contract, resulting in a net profit of $0.35 per contract.
Analysis:
Max Risk: $115
Max Reward: $85 or 73% with IWM trading between $223 and $229 by Sep 3rd
Profit Range: IWM trading between $223 and $229 by Sep 3rd
Commission (round trip): $5.20
Realized Profit / Loss: $35 or 30% (pre commission)
