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New Trade Entry : XSP Iron Condor for September monthly cycle.
Below is the position entered a short while ago:
XSP Iron Condor Position Entered Tuesday, August 11, 38 days prior to expiration.
XSP Iron Condor position shortly after entry
Time of entry: 12:55 pm Eastern. XSP price: 193.47
Call Spreads: -200/+205 Delta of short call .14 at time of entry.
Put Spreads: -183/+178. Delta of short put -.16 at the time of entry
Credit received: $.80, which is the minimum recommended credit for this strategy. My order sat as an open/working order for over 2 hours before it filled.
Maximum margin/risk is $420. Maximum risk is the width of the widest spread ($500 less credit received $80.)
Target Gain: $42 (10% of current margin).
Maximum Loss: $63 (15% of current margin).
Trade Management: The plan is to keep the position open until target gain or max loss is reached, with no adjustments. The position will be exited at either target gain or max loss, or if XSP reaches either short strike.
Having said that, it is a traderâ€™s individual decision whether to wait for target gain, or max loss, on any position. Trading is a blend of oneâ€™s individual style, risk tolerance, and intuition. This combination can help reach your annual trade plan results. I recommend following your own trade style; there is nothing wrong with exiting a position early.
Below is the 6 month chart indicating the short strikes:
XSP 6 month chart:
I will post trade updates as appropriate.
As always, stay keen on your risk management and trade carefully.