New Trade Entry : IWM Monthly Iron Condor for December cycle.
Below is the position entered this morning:
IWM Iron Condor Position Entered Wednesday, November 13, 37 days prior to expiration.
IWM Iron Condor position shortly after entry
Time of entry: 10:45 am Eastern. IWM price: 109.58
Call Spreads: -114/+119. Delta of short call .18 at time of entry
Put Spreads: -103/+98. Delta of short put -.16 at the time of entry
Credit received: $.85
Maximum margin/risk is $415. Maximum risk is the width of the spread ($500 less credit received $85.
Target Gain: $41 (10% of current margin).
Maximum Loss: $62 (15% of current margin).
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 September 10, 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.
Tomorrow is the planned entry day for a new SPX weekly trade, as long as market conditions are within the guidelines. As of today, the trade will either be a credit spread, or an Iron Condor. There is a fair amount of economic news in the morning so I will definitely wait at least the first hour before entering. News-worthy events are:
8:30 am Jobless Claims
8:30 am International Trade
10:00 am Janet Yellen's FOMC Chairman confirmation hearing begins.
I will evaluate the market in the morning and post the trade entry details.
As always, stay keen on your risk management and trade carefully.