... for a 1.07/contract credit.
Metrics:
Max Profit: $107/contract
Max Loss: $193/contract
Break Evens: 248.93/278.07
Delta; -1.4
Theta: 1.73
Notes: With 38 days to go in the January cycle, layering on a smidge of short delta to my slightly long delta SPY core position, which -- as I note below -- can't be adjusted all that much. As usual, I'll look to mix and match profitable put side with profitable call side to realize gains and to take off risk running into expiry. Current scratch point: 10.36.
A side note: Layering on with short strangles is a bit easier than with iron condors. Iron condors' long option wings can be "stepped on" when layering on -- selling a short put at the same strike as one of your preexisting longs closes the long out and vice versa (buying a long option at the same strike as a preexisting short closes the short out). Always check that you're showing that you're "opening" the four separate legs of the iron condor you want to put on, rather than opening some legs and closing out others that you've already got on. You can naturally sell setups in different expiries to avoid "stepping on," but you generally want to mix and match profitable put side with profitable call side in the same expiry to optimize buying power utilization.
Metrics:
Max Profit: $107/contract
Max Loss: $193/contract
Break Evens: 248.93/278.07
Delta; -1.4
Theta: 1.73
Notes: With 38 days to go in the January cycle, layering on a smidge of short delta to my slightly long delta SPY core position, which -- as I note below -- can't be adjusted all that much. As usual, I'll look to mix and match profitable put side with profitable call side to realize gains and to take off risk running into expiry. Current scratch point: 10.36.
A side note: Layering on with short strangles is a bit easier than with iron condors. Iron condors' long option wings can be "stepped on" when layering on -- selling a short put at the same strike as one of your preexisting longs closes the long out and vice versa (buying a long option at the same strike as a preexisting short closes the short out). Always check that you're showing that you're "opening" the four separate legs of the iron condor you want to put on, rather than opening some legs and closing out others that you've already got on. You can naturally sell setups in different expiries to avoid "stepping on," but you generally want to mix and match profitable put side with profitable call side in the same expiry to optimize buying power utilization.
