New Trade Entry : SPX Weekly Iron Condor for August 1 cycle. Below is the position entered earlier today:
SPX Iron Condor Position Entered Thursday, July 25, 8 days prior to expiration. The Option Code for this cycle is SPXW130802, expiring Friday, August 2.
SPX August 1 Iron Condor position shortly after entry
Time of entry: 1:15 pm Eastern. SPX price: 1,687.66
Call Spreads: -1720/+1730. Delta of short call .11 at time of entry
Put Spreads: -1640/+1630. Delta of short put -.11 at the time of entry
Credit received: $1.40
Maximum margin/risk is $860. Maximum risk is the width of the spread ($1,000 less credit received $140).
Target Gain: $105 (75% of credit received). This gain represents a 12.2% gain on actual margin
Maximum Loss: $140
Adjustment Trigger: If the delta of the short call or short put reaches entry delta +10 (in this case .21), roll out the threatened side 10 points. As outlined in the guidelines published on July 4, it is a trader's choice after adjusting to either add additional spreads at the new strikes to make up the difference in credit, or to just have a reduced target gain.
I have not yet entered a RUT credit spread; I prefer to diversify trade entry a bit by time and will re-visit entry tomorrow if conditions are within the guidelines.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully.