As with my previous, short-term RUT trade, I'm looking to keep buying power engaged while I wait for March index ETF trades to decay and/or work themselves out.
Here's the metrics for the setup:
March 4th 970/975/1045/1050 Iron Condor
Probability of Profit: 66%
Max Profit: ~$170/contract
Buying Power Effect/Max Risk: ~$329
Notes: Due to the price of the underlying, look to attempt to get a fill slightly above the mid price, since price can move +/- .05 somewhat quickly. Look to take the entire setup off at 50% max profit or peel off the side that is at or near max profit (<.05) prior to expiration. In the event a side is tested, look to roll the tested side out to the next weekly and sell an oppositional side against for a credit that exceeds the cost of the roll.
Here's the metrics for the setup:
March 4th 970/975/1045/1050 Iron Condor
Probability of Profit: 66%
Max Profit: ~$170/contract
Buying Power Effect/Max Risk: ~$329
Notes: Due to the price of the underlying, look to attempt to get a fill slightly above the mid price, since price can move +/- .05 somewhat quickly. Look to take the entire setup off at 50% max profit or peel off the side that is at or near max profit (<.05) prior to expiration. In the event a side is tested, look to roll the tested side out to the next weekly and sell an oppositional side against for a credit that exceeds the cost of the roll.
评论:
Oops. The call side should "1045/1050" in the header ... .
评论:
Filled for 1.65 ... .
评论:
I'll be looking to take off the put side early next week for near worthless. Price is precariously close to the call side; I'll roll no later than Tuesday if I'm at all uncomfortable with it to the following week's expiration and then proceed to sell a put side against it.
评论:
Closed the put side for a .10 debit. Although this still has a few days to work out, I prefer not having to watch it, so I rolled the 1045/1050 out another week to the 1060/1070 for a .45 credit and sold a March 11th 985/995 short put spread for another 1.20. Frankly, it's nearly as good as an original setup .... .
评论:
Bought the put side back for .20 (1.20 credit - .20 debit = 1.00 credit/$100 per contract) profit. Naturally, I still have the call side to deal with next week, which will probably have to be rolled again it looks like.
