By Mike Parnos
Happy Expiration Week, Troops!
As we head into the last few trading days of our 40th profitable month out of 43, let's try to put on another June SPX position.
CPTI June Position #3 - SPX - Iron Condor -
On 5/16 with the SPX trading at about 1295, let's:
Sell 12 June SPX 1220 puts - SZPRD
Buy 12 June SPX 1205 puts - SZPRT
For a credit of about $.50 ($600)
Sell 12 June SPX 1350 calls - SXYFJ
Buy 12 June SPX 1365 calls - SXYFM
For a credit of about $.70 ($840)
Total net credit and profit potential of $1.20 ($1.440). Our maximum profit range is 1220 to 1350. The maintenance is $18,000 -- IF you have the right broker.
These numbers are based on Monday's closing figures. Things will likely be different when the market opens Tuesday morning. So, be prepared to adjust your credit limits up or down as the situation dictates. Always double check the option symbols before you place your orders.
I constantly receive emails about some people who were not filled on previous positions. Well, welcome to the real world. When you are initiating a position, especially using CPTI strategies, it will take some work -- and it's not like Minute Rice. The hands off part doesn't come into play until after the position is established. The market is constantly moving. This is not brainless buying straight puts and calls as a predetermined price. Here, we have an incredible track record because out positions have a very high probability of success. It takes learning and experience. Remember, things of value are worth working for.
Do you put the whole Iron Condor on at once? Sometimes you can get away with it. Other times, you put the spreads on as separate orders -- and watch as the market moves up and down -- and wait patiently for your fills -- or make adjustments as the market fluctuates.
If you are consistently not getting filled, you need help. You should consider attending one of my two day advanced seminars. There, you will see the light!! You will be cured!! Halleluja, Praise the Lord, the Pistons, and pass the profits.
Good luck, trade smart and use common sense.