Bot RUT SEP 730/740 at $0.15
Bot RUT SEP 860/870 at $0.19
The total profit for this adjusted position is $1.38 per spread. Subtracting the -$0.20 loss on the original position results in a total profit of $1.18 [...]
View the original trade here. Made the following adjustment today:
Bot RUT SEP 680/690 at $0.25
Bot RUT SEP 845/855 at $2.10
Sold RUT SEP 730/740 at $0.77
Sold RUT SEP 860/870 at $0.95
The new position is a RUT SEP 730/740/860/870 IC with a credit of $1.72. The target profit [...]
Besides the fact that I like to trade delta neutral on the indexes, I entered an iron condor position in the Russell 2000 (RUT) index today for a couple of other reasons.
Implied volatility (IV) is high relatively high Put skew is slightly above the 2-year mean
See this post for my previous thoughts on this trade. The options markets were pricing-in a move of roughly $33.68 (6%) which seemed justifiable. The straddle pricing in Apple (AAPL) has over-priced the move 75% of the time during the last 8 quarters so I felt comfortable selling the vol using this range.
- Quick Take On The Markets & Watchlist
- Markets Keep Exploding And Options Watchlist
- Reader Question: Butterflies and Implied Volatility Skew
- What Led The Market This Week? (And Watchlist)
- Defensive Sectors Leading The Market & Watchlist
- Breaking Down This Week’s Winners & Watchlist For Next Week
- What Sectors Are Leading The Market?
- Market Strength and My Watchlist
- Implied Volatility Skew and What It Tells Us
- An Interesting Take on Selling Implied Volatility Here