New Trade Entry : SPY Iron Condor for June monthly cycle.
Below is the position entered a short while ago:
SPY Iron Condor Position Entered Tuesday, May 13, 38 days prior to expiration.
SPY Iron Condor position shortly after entry
Time of entry: 12:00 pm Eastern. SPY price: 189.85
Call Spreads: -196/+200. Delta of short call .14 at time of entry. Please note that the width of the spread on the calls is 4 points rather than 5. There was not a 201 strike to choose from, so the long call is at 200.
Put Spreads: -182/+1177. 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 widest spread ($500 less credit received $81.)
Target Gain: $42 (10% of current margin).
Maximum Loss: $63 (15% of current margin).
Trade Management: The plan is to keep the position open until target gain or max loss is reached, with no adjustments. The position will be exited at either target gain or max loss, or if SPY reaches either short strike.
Having said that, it is a traderâ€™s individual decision whether to wait for target gain, or max loss, on any position . Trading is a blend of oneâ€™s individual style, risk tolerance, and intuition. This combination can help reach your annual trade plan results. I recommend following your own trade style; there is nothing wrong with exiting a position early. I feel we are at a very crucial point in the market, and will be very quick to close this trade if it moves sharply against me.
Below is the 6 month chart indicating the short strikes:
SPY 6 month chart:
I will post trade updates as appropriate.
As always, stay keen on your risk management and trade carefully.