Recommended trade entry for Monday, September 8
October monthly cycle, expires October 18
Recommended Trade Entry:
- SELL SPY October 206 Calls, currently $.40. Delta of short call: .16.
- BUY SPY October 211 Calls, currently $.05.
- SELL SPY October 193 Puts, currently $1.08. Delta of short put: - .18
- BUY SPY 188 Puts, currently $.60.
It is recommended to place the order as a single entry: SELL " Iron Condor".
Current mid price for all four legs: $.83. We recommend trying to get filled for the mid, or a few cents below. Minimum recommended credit: $.80.
The current open interest on the long call strike of 211 is very low, so it may take some time to get filled.
I did compare the same suggested entry on the mini-index XSP rather than SPY, but the highest call strike currently available is 210. I felt it best to have equal width on both sides, so I am recommending SPY this month.
Update will be posted with exact position details when the order is executed.
For those unfamiliar with this trade, the guidelines were published in my weekend update Saturday, September 6.
As always, stay keen on your risk management and trade carefully,