New Trade Entry : SPX Weekly Iron Condor for August 3 cycle. Below is the position entered this morning:
SPX Iron Condor Position Entered Thursday, August 8, 7 days prior to expiration. The Option Code for this cycle is SPXW130817, expiring Friday, August 16. Because this is the regular monthly cycle, however, the last day to trade this position will be Thursday, August 15.
SPX August 3 Iron Condor position shortly after entry
Time of entry: 10:30 am Eastern. SPX price: 1,692.71
Call Spreads: -1720/+1730. Delta of short call .11 at time of entry
Put Spreads: -1655/+1645. Delta of short put -.12 at the time of entry
Credit received: $1.35
Maximum margin/risk is $865. Maximum risk is the width of the spread ($1,000 less credit received $135.
Target Gain: $101.25 (75% of credit received). This gain represents a 11.7%% gain on actual margin
Maximum Loss: $135
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 an SPX credit spread for next week's cycle; I will be entering this position in the next hour or so and will post entry details when the position is opened.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully.