Stock / Symbol: S&P 500 Index / SPX
Price at trade post: $1274.90
Option Strategy: [private_monthly]iron condor[/private_monthly]
Reasoning: This [private_monthly]iron condor on SPX gives us a pretty wide profit range and about a 72% probability of success to the downside and 92% to the upside. If the SPX gets down to 1200, we'll either stop out for a relatively small loss or roll into a further out of the money put spread. If the SPX makes a miraculous recovery back to 1355, we'll either stop out for a relatively small loss or roll into a further out of the money call spread. Pretty good potential yield on this one at around 30%. [/private_monthly]
Trade Details:
[private_monthly]
BTO 1 SPX Ju112 1175 put
STO -1 SPX Ju112 1185 put
STO -1 SPX Ju112 1385 call
BTO 1 SPX Ju112 1395 call
for a min net credit of $2.30 per contract. The mid is currently at $2.85 (current bid -$0.70 / ask $6.05) (GTC, limit order). Note: if you're still not filled and the S&P is trading under 1240 or over 1325, cancel the order.
Requirements:
Cost/Proceeds ($230)
Option Requirement $1,000
Total Requirements $770
Estimated Commission $12.95
[/private_monthly]
Max Risk: $770
Max Reward: $230 or 29.8% by Jul 20
Profit Range: between $1185 & $1385 by Jul 20
Suggested Downside Stop @ $1200
Suggested Upside Stop @ $1355
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