Good Morning Troops,
On Sunday, I proposed a potential Iron Condor position for January. Here is how it worked out.
Originally I suggested 15 contracts of the S&P 500 (SPX) 680/670 bull put spread ($.80) and the S&P 500 1070/1080 bear call spread ($.70) for a net credit of $1.50 ($2,250).
I saw that the futures were going to gap up, so, at the open, I put in an order for the 680/670 bull put spread. I was filled within a few minutes. I took a shot and it worked out. That's the nice thing about option orders. They don't cost anything to put out there. However, I was prepared to raise to the 690/680 bull put spread if necessary.
Then, I waited for awhile. Instead of putting out an order for the 1070/1080 bear call spread, I thought I'd try to take advantage of the morning spike up. I put out an order to sell the SPX 1090/1100 bear call spread at $.70. As the market moved up, I was eventually filled.
What did a little common sense allow me to accomplish? I ended up with the same $1.50 net credit. However, I got an additional 20 points of cushion on the call side. The maximum profit range is 410 points - 680 to 1090.
The market may be in chaos, but I think we have a real fighting chance of this trade being profitable.
These seemingly simple trading methods are just the tip of the iceberg of the material we covered at the just completed two-day Orlando seminar.
Good luck and be careful.