New Trade Entry : SPX Weekly Iron Condor for August 4 cycle. Below is the position entered this morning:
SPX Iron Condor Position Entered Friday, August 16, 7 days prior to expiration. The Option Code for this cycle is SPXW130823, expiring Friday, August 23.
SPX August 4 Iron Condor position shortly after entry
Time of entry: 10:30 am Eastern. SPX price: 1659.87
Call Spreads: -1690/+1700. Delta of short call .12 at time of entry
Put Spreads: -1615/1605. Delta of short put -.13 at the time of entry
Credit received: $1.55
Maximum margin/risk is $845. Maximum risk is the width of the spread ($1,000 less credit received $155.)
Target Gain: $116.25 (75% of credit received). This gain represents a 13.7% gain on actual margin
Maximum Loss: $155
Adjustment Trigger: If the delta of the short call or short put reaches entry delta +10, 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 am waiting until this afternoon to see if there is a clearer picture of the market direction. If I feel uncertain, I will not enter the trade as I never enter a position with an uncomfortable feeling. If I enter a credit spread this afternoon I will post entry details.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully.