Recommended trade entry for Thursday, January 26
Option Code: SPX170203
Expiration: Friday, February 3.
As I have written previously, several subscribers have experienced execution issues with the SPX Weekly Iron Condor we usually enter on a Friday, and not able to get a fill. Personally, I am not a huge fan of entering the weekly Iron Condor on a Thursday; my best results have been entering on Friday's. But I also believe there is always room for improvement, so in my ongoing efforts to satisfy as many requests as possible, I decided we will test the waters with an early entry for the weekly position.
Having said that, the relentless rally continues, volatility is now down to 10.66 as of the close yesterday. I have set up the following trade entry; HOWEVER, I am strongly recommending those entering this with live capital do so in a much smaller size than usual. Or, the other option (and perhaps the better one) is to test this early entry as a paper trade and keep your hard-earned capital in your trading account.
Recommended Trade Entry:
- SELL SPX February 3 2330 Call, currently $2.30. Delta of short call: .14.
- BUY SPX February 3 2340 Call, currently $1.45.
- SELL SPX February 3 2255 Put, currently $2.30. Delta of short put: -.13.
- BUY SPX February 3 2245 Put, $.1.75.
It is recommended to place the order as a single entry: SELL " Iron Condor".
Current mid price for all four legs: $1.40. 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,