Below is the position which filled a short while ago:
SPX Weekly Iron Condor:
The strikes for this week's position are:
Calls: -1965/+1975. Delta of short call .08
Puts: -1860/+1850. Delta of short put -.12
Below is the SPX chart showing the short strikes:
SPX 6 month chart
Credit received: $1.30. SPX was at 1916.00, and VIX at 16.18 when the trade was entered. The mid price at the time was $1.40; I caved $.10 from the mid in order to get filled.
Total margin/risk: $870.
Target gain: 7% of margin/risk
Max loss: 10% of margin/risk.
This position will remain open until target gain is reached, as long as SPX stays between the short strikes. It will be exited at the pre-set max loss, or if SPX 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. Remember with weekly trades, there are 52 opportunities in a year to trade so it is important to be comfortable with your trade size and position. Remember, trading is an art, not a science.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,