Stock / Symbol: Google / GOOG
Option Strategy: iron condor
Trade entry date: Jan 19
Trade exit date: Jan 20
Price at trade entry: $636.60
Price at this post: $581.87
Update: We got filled yesterday on this trade at $5.10 per contract, guaranteeing a profit of $0.10 per contract on the trade regardless of where GOOG finished the day today. Anytime you can take money from the Street at ZERO risk, you gotta take it, now matter how small the amount. This trade was like getting paid $30 to own a lottery ticket with a potential payout of $5,000. After commissions, we'll net $30 on this trade and had the potential to make as much as $5,000 had GOOG finished the day in the $636 to $639 range.
Depending upon your broker's assignment fees, you can either let the trade expire and get assigned at $5.00 per contract on the put spread portion of the trade (or) close the put spread before the market closes today for a net debit of $5.00 per contract. As OptionsXpress charges $9.95 per assignment per leg, we're going to let our position get assigned as it would cost us $25 in commissions to close the trade. However, in my ThinkOrSwim account, I'm closing the trade early as they charge $20 per assignment per leg.
Position Details:[private_monthly]
Long 10 GOOG Jan12 630 Puts
Short -10 GOOG Jan12 635 Puts
Short -10 GOOG Jan12 640 Calls
Long 10 GOOG Jan12 645 Calls
for a net credit of $5.10 per contract
[/private_monthly]
Max Risk: NA
Min Reward: $100 (pre-commission)
Max Reward: $5000
Profit Range: all prices
Max Profit at: $636 - 639 by Jan 20
Realized Profit: $30 (after commissions)
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