Stock / Symbol: S&P 500 / SPX
Option Strategy: iron condor
Date entered: Nov 30th
Trade adjusted on: Dec 7th
Price at trade entry: $1184.64
Max Profit: $320
Max Risk: $1680
Max Return: 19%
Profit Range: $1118 - 1246
Max Profit between: $1120 - 1245
Realized Profit: $50
Realized Return: 2.97% (before commissions)
Analysis: It turns out that our initial upward price target for the S&P by December expiration was spot on as the SPX closed at 1243.91 on expiration day last Friday. However, we adjusted the trade on Dec 7th to insure that the calls would expire worthless. This unnecessary adjustment ate up most of our profits. Note: as our optionwiz brokerage account was nearly maxed out at the time, trading this one in a separate account.
Initial Trade Details:
Buy 2 SPX Dec10 1110 Puts
Sell -2 SPX Dec10 1120 Puts
Sell -2 SPX Dec10 1245 Calls
Buy 2 SPX Dec10 1255 Calls
for a net credit of $1.70 per contract or a total of $340
Then, adjusted as follows on Dec 7th:
Buy -2 SPX Dec10 1245 Calls
Sell 2 SPX Dec10 1255 Calls
Sell -2 SPX Dec10 1265 Calls
Buy 2 SPX Dec10 1275 Calls
for a net debit of $1.45 per contract or a total of $290
Chart:
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