Recommended trade entry for Thursday, July 20
Option Code: SPXW170728
Expiration: Friday, July 28
Recommended Trade Entry:
Please Note: The VIX is very low, so I am very cautiously recommending this trade. As always, it is a trader's choice whether to take the play or sit on the sidelines.
- SELL SPX July 28 2500 Call, currently $1.60. Delta of short call: .14.
- BUY SPX July 28 2510 Call, currently $.75.
- SELL SPX July 28 2430 Put, currently $ 1.80. Delta of short put: -.11.
- BUY SPX July 28 2420 Put, currently $1.35.
It is recommended to place the order as a single entry: SELL " Iron Condor".
Current mid price for all four legs: $1.30. Bid/ask prices can sometimes be wide, so there is no guarantee there will be a fill at the current mid price. Some traders may get filled at a better credit, others may have to cave in a bit to get the order executed. But it is not recommended to open the position unless you can get $1.25 credit.
Please note: Traders should always be aware of any news events that may cause a sudden move in the market. If that occurs, it is recommended to immediately cancel the working order until things settle. Depending on the move that may occur, the above strikes may need to be changed to appropriate strikes within the .10 - .15 range. It is each individual's responsibility to select the strikes they feel most comfortable with, depending on trading style and risk tolerance.
Update will be posted with exact position details when the trade is opened.
As always, stay keen on your risk management and trade carefully,