OptionPundit

Category: Iron Condor

  • RUT Iron Condor (Feb’07, Closed for 88%, 23.38% Profit)

    Another successful option Iron Condor on Russell 2000 (RUT).  I decided to buy back my bear call credit spread of $830/840 for $0.25 and release the margins. This bring my obverall profit from this trade which I originally initiated from past sevral months (find this link for 1st trade) are 88% and for the new feb trade (click here to follow discussion on 2nd trade) are 23.38%. Profitable trading

  • GOOG Iron Fly : Paper Trade/29% Profit

    Profit from Google options expiration due to pinning, with reference to my earlier post here : As this was my first time to test this, I did a paper trade. I played GOOG via an Iron Fly: sold Jan 07 490call, bot 500 call, sold 490 put, bot 480 put. Overall credit $3.30 at the beginning of the day. After lunch I could have bought it back for $1.30. That is $2.00 return on $6.70 margin. Overall 29% ROM in one day. Since I didn’t capture the screenshot, I can’t share actual prices at opening, but you can check this out in any option calculator. Look at the intraday chart…GOOG continued to play between $486 and $491

    GOOG Pin Jan 2007

    I will play something similar in the next expiration cycle,
    Profitable trading,

  • RUT Iron Condor (Jan’07, Closed for 39.86% Profit)

    OP Readers,

    3 Cheers. I took advantage of today’s brief rally and bought back my put leg (740/750) for $0.20 cents instead of waiting and letting it expire worthless. With this I have closed my Jan’07 RUT trade and I collected $310-$15-$20=$275 by risking $690 per leg. This resulted in 39.8% profit for this IC.

    Here is the transaction detail:Jan 07 BullPut closure

  • RUT Feb’07

    For the month of Feb’07, I am looking to open another RUT IC i.e. 830/840/730/720 for $2.20-$2.30. My short strikes are 1 std dev away and the possibility of this IC expiring worthless are 89% on call side and 83% on the put side.

    Here is the risk/reward graph: Reward $230/Risk $770 per leg. This translates to about 29.8% returns for 5-6wks holding period.

    Feb'07 RUT IC New

  • RUT Iron Condor (Feb’07 Update)

    I have rolled up both the legs.
    880/900 to 830/840 for $0.85 credit. Also reduced the spread from $20 wide to $10. I also rolled up 700 put to 710 for $0.90 credit and the similar to BCS also reduced it’s spread to $10.

    With these adjustments, I have collected $3.20+$0.85+0.90= $4.95 (for my resulting 830/840/720/710 IC) and my current risk is only $5.05. If RUT remains between 720-830, my returns are going to be almost 98%.

     

  • RUT Iron Condor (Jan’07, 34% so far)

    I closed my 840/850 BCS by buying for $0.15. Now I am open on the bull put side (750/740) which is currently selling for $0.70 and there are 2 more week for the expiration. It is still above my threshold so I don’t want to buy this back yet.


    With this purchase of BCS now I have already collected $2400 out of $3100 possible credit. That makes my profit to 34% already.