New Trade Entry : SPX Weekly Iron Condor for August 5 cycle. Below is the position entered a short while ago:
SPX Iron Condor Position Entered Friday, Thursday, August 22, 8 days prior to expiration. The Option Code for this cycle is SPXW130830, expiring Friday, August 30.
SPX August 5 Iron Condor position shortly after entry
Time of entry: 12:30 pm Eastern. SPX price: 1654.61
Call Spreads: -1685/+1695. Delta of short call .11 at time of entry
NOTE: The call spreads are the same strikes as the Call Credit Spread entered earlier today; however, I manage them as 2 separate trades.
Put Spreads: -1610/+1600. Delta of short put -.12 at the time of entry
Credit received: $1.45
Maximum margin/risk is $855. Maximum risk is the width of the spread ($1,000 less credit received $145.
Target Gain: $108.75 (75% of credit received). This gain represents a 12.7% gain on actual margin
Maximum Loss: $145
Adjustment Trigger: If the delta of the short call or short put reaches entry delta +10, roll out the threatened side 10 points. As outlined in the guidelines published on July 4, it is a trader's choice after adjusting to either add additional spreads at the new strikes to make up the difference in credit, or to just have a reduced target gain.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully.