New Trade Entry: SPX Iron Condor for the May cycle, 9 days prior to expiration. Below is the position entered today. Please note this is not a live trade recommendation, as mentioned earlier I am continuing to paper trade the strategy for those of you interested in a "no touch" trade. The back testing results indicated an average gain per week of 2.6% for the 52 weeks tested, taking losses into consideration. I feel it is worthwhile to continue to place the trade each week on paper to see how it behaves in current market conditions.
SPX Position Entered Tuesday, May 7
SPX May Iron Condor at time of entry
Time of entry: 12:00 pm Eastern. SPX price: 1619.91 at entry; VIX at 12.78.
Call spreads: -1645/+1670. Short call delta: 16.
Put spreads: -1585/+1555. Short put delta: -16.
Credit received: $3.20
Margin requirements: $3,000
Maximum risk: $2,680 ($3,000 less credit of $320)
Target gain: 60% of credit received, or $192 (before commissions)
Trade will be exited if max loss of $320 is reached (100% credit received) OR if either short strike is reached.
I will post an update as the trade progresses.
The next entry for the SPX weekly Iron Butterfly will be Thursday, May 9, if market conditions are suitable. Trade recommendation for entry price ranges and strikes will be posted tomorrow.
As always, stay keen on your risk management and trade carefully.