Recommended trade entry for Monday, January 11
Please note that this trade entry is being recommended very cautiously. We could still see more volatility ahead, so please consider reducing your position size if you are trading it live. Or, it is perfectly fine to sit on the sidelines if you are uncomfortable with your risk.
February monthly cycle, expires February 19
Recommended Trade Entry:
- SELL SPY February 205 Calls, currently $.58. Delta of short call: .12.
- BUY SPY February 210 Calls, currently $.14.
- SELL SPY February 175 Puts, currently $1.45. Delta of short put: - .15
- BUY SPY February 170 Puts, currently $.99.
It is recommended to place the order as a single entry: SELL " Iron Condor".
Current mid price for all four legs: $.90. We recommend trying to get filled for the mid, or a few cents below. Minimum recommended credit: $.80.
Update will be posted with exact position details when the order is executed.
For those unfamiliar with the strategy, the trade management guidelines were updated on August 20, 2015, and can be found here: Link to Articles
As always, stay keen on your risk management and trade carefully,