New Trade Entry : IWM Monthly Iron Condor for February cycle.
Below is the position entered this morning:
IWM Iron Condor Position Entered Monday, January 13, 39 days prior to expiration.
IWM February Iron Condor shortly after entry:
Time of entry: 11:00 am Eastern. IWM price: 115.42
Call Spreads: -120/+125. Delta of short call .18 at time of entry
Put Spreads: -109/+104. Delta of short put -.17 at the time of entry
Credit received: $.81
Maximum margin/risk is $419. Maximum risk is the width of the spread ($500 less credit received $81.)
Target Gain: $42 (10% of current margin).
Maximum Loss: $63 (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 to a strike where the delta is between .15 and .20. It may also be necessary to roll the "good" side in order to keep enough credit in the trade. As outlined in the guidelines published on September 10,2013 it is then 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 will post trade updates as appropriate.
As always, stay keen on your risk management and trade carefully.