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RUT Iron Condor (Feb’07)

Published on December 30, 2006

RUT Iron Condor (Feb’07)

December 30, 2006

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

One Comment

  • Avatar optionpundit says:

    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 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 50%.

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