New Trade : SPX

Stock / Symbol: S&P 500 Index / SPX

Price at trade post: $1342.70
Option Strategy: iron condor

Reasoning: This iron condor on SPX gives us a pretty wide profit range (between [private_monthly]1230 and 1435). The short 1230 puts currently have a .11 delta and a 87% chance of expiring OTM. The short 1435 calls currently have a .05 delta and a 95% chance of expiring OTM. If the SPX gets down to 1273, we'll either stop out for a relatively small loss or roll into a further out of the money put spread. If the SPX gets up to 1384, we'll either stop out for a relatively small loss or roll into a further out of the money call spread. IMPORTANT: once you get filled, immediately set your sell orders on the put and call spreads to buy them back for $0.15 each. [/private_monthly]

Trade Details:
[private_monthly]

BTO 1 SPX Aug12 1220 put
STO -1 SPX Aug12 1230 put
STO -1 SPX Aug12 1435 call
BTO 1 SPX Aug12 1445 call

for a min net credit of $1.20 per contract. The mid is currently at $1.30 (current bid -$0.90 / ask $3.55) (GTC, limit order).

THEN, once filled, enter the following closing orders (GTC):
STC 1 SPX Aug12 1220 put
BTC -1 SPX Aug12 1230 put
for a net debit of $0.15 per contract

and
BTC -1 SPX Aug12 1435 call
STC 1 SPX Aug12 1445 call
for a net debit of $0.15 per contract

Requirements:

Cost/Proceeds ($120)
Option Requirement $1,000
Total Requirements $880
Estimated Commission $12.95
[/private_monthly]

Max Risk: $880
Max Reward: $120 or %13.6 by Aug 17[private_monthly]
Profit Range: between $1230 & $1435 by Aug 17
Suggested Downside Stop @ $1273
Suggested Upside Stop @ $1384
[/private_monthly]
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