OptionPundit

Category: Iron Condor

  • RUT Iron Condor (Jan’07)

    I have collected $2177 out of possible $3100 from the RUT Jan Iron condor. That’s about 70% of total premium that I can generate by selling IC. This is app 31% profit for the Iron condor and just 3 weeks to go for the Jan expiration cycle.


    Some of you might be surprised how could I receive such high premium. I am using 2 months rolling strategy and this premium was achieved by opening this highly probable trade 2 months ago and with theta gains. Currently RUT is at $788 and my short strikes are 840 and 750 (97% and 87% chance of expiring worthless). If it expires worthless, my total return on this trade are expected to be 44.9%.

    It’s difficult to post the actual trades pictures as that involve quite a few adjustments. If you have any questions/comments, we can discuss it here at: Rut IC Jan 07

    Profitable trading,
    OptionPundit

  • RUT Iron Condor (Feb’07)

    Pictured below is my Feb’07 RUT condor. It was a 20point wide condor and total credit received was $3.20 (i.e. $3.20 reward for $16.80 risk i.e 19% returns expectancy). My short strikes were 880 and 720. Currently RUT is trading at 788 and with the theta gains I have already collected $1.60 out of total $3.20 credit.

    I am looking for rolling it to generate more credits as we get into the next month. The concept is simple but the art will be in getting the right credit and good fill. Stay tuned.

    Discuss it here : Rut IC Feb’07

    Profitable Trading,
    OptionPundit

  • RUT BPS (Closed 9.6% profit)

    I started this trade with the intentions of opening an Iron Condor. My first priority was to have Bull Put leg to be filled followed by Bear Call (as we are in bullish environment currently and also IV was higher on Puts then on calls). I sold 720/710 Dec bull put for $1.15 credit ($8.85 risk). This risk would have gone lower if I had opened BCS leg as well. However, within 6 days of holding period, RUT rallied and the premium dropped to $0.30 cents. I took this opportunity to close my trade as Risk/reward was not in favor to keep it for next 26 days. This trade gave me 9.6% profit within 6 days. I shall look for other opportunities next week.

    Profitable trading

  • RUT Iron Condor (Closed-profit 25.8%)

    This is to update that I got filled for my another leg of RUT IC i.e. 720/710 and 810/820. I bot it back for $0.25 while I sold it for $2.15. Here is the attachment of transaction:
    This completes my overall transaction for Nov iron condor. This trade resulted in $1.90+$$2.10=$4.00 over $15.45 risk. That is 25.8% profit in for 1 month holding period of Russell.

    Cheers and profitable trading

  • RUT Iron Condor (update-profit 27.6%)

    This is to update that I have closed one of the Iron condors on RUT earning $2.10 credit on $7.60 risk. That gives me kool 27.6% for 1 month holding. Attached below is my transaction details.


    I still have another IC that is 720/710/810/820 that I had sold for $2.15. It is currently selling for $0.30. I have earned $1.85 already; that is $1.85 over $7.85 i.e. another 23.5%.

    Currently RUT is at 764 and that is 96% of expiring worthless as it is about 50 points away from my short legs.

    Profitable trading,
    OptionPundit

  • RUT Iron Condor (Nov’06)

    November Iron Condor:

    • October 11, Filled 690/700 Bull Put RUT spreads for $1.40 credit.
    • October 13, Filled 810/820 Bear Call spread for $.90 credit then again got filled on Oct 16 for $1.10 credit.
    • Ocotber 20, filled 720/710 Bull Put spred for $1.15 credit

    These multiple credit spread completed my Nov’06 Iron condor for a total of $4.55 credit @ total risk of $15.45. If all options expires worthless by November 16th, i.e. RUT remains between 720 and 810, I shall earn full credit i..e $4.55

    The returns will be $4.55/$15.45 = 29.4% in 1 month.

    As of October 30, this is how the chart looks like:


    And the transaction are: