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"Iron Condor"
View the original trade here and adjustment here. The trade was fully closed today with the following:
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
Here’s a short video of a few credit spread and an iron condor idea for this coming week in Baidu (BIDU), Amazon (AMZN), salesforce.com (CRM), and CF Industries (CF).
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.
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