It is time to cautiously enter our monthly IWM position.
Looking ahead to the November cycle for a monthly position, the IWM Iron Condor can be entered any time next week.
IWM closed Friday at 107.02. The guidelines call for the short strike to be at a delta less of .20 or less. Based on the close, the current strikes would be:
Calls: -112/+117 - Current delta of the 112 Call is .20
Puts: -100/+95 - Current delta of the 100 Put is -.20
This example is shown in the graph below:
IWM November Iron Condor example:
The current credit for this sample position is $1.02.
Depending on the entry day and time, the deltas and short strikes may be different than outlined above. Also, if either short strike delta exceeds beyond 20 at the time of entry, it is recommended to select the first strike with a delta of 20 or under. I will assess the market, and the political situation, on Monday before entering this position. There are still 41 days until November expiration, so there is no need to rush the entry.
It is also recommended for those entering this position live, to trade it very small until the political situation in Washington is resolved.
The target gain on the monthly Iron Condor is 10% of actual margin/risk, and the maximum loss is 15%.
For those of you who may not be familiar with the trade setup and management, the guidelines were published on September 10, and can be found here: Link to Articles
I will post exact entry details when the position is entered next week.
As always, trade carefully and stay keen on your risk management.