Recommended trade entry for Friday, July 28
Option Code: SPXW170804
Expiration: Friday, August 4
Recommended Trade Entry:
Please Note: While volatility is up just slightly this morning, the VIX is very low, so I am very cautiously recommending this trade. The suggested trade has less room between the short strikes than usual because of the low volatility. As always, it is a trader's choice whether to take the play or sit on the sidelines.
- SELL SPX August 4 2500 Call, currently $.95. Delta of short call: .09.
- BUY SPX August 4 2510 Call, currently $.40.
- SELL SPX August 4 2435 Put, currently $ 2.90. Delta of short put: -.15.
- BUY SPX August 4 2425 Put, currently $2.20.
It is recommended to place the order as a single entry: SELL " Iron Condor".
Current mid price for all four legs: $1.25, which is the suggested minimum credit for the trade. Bid/ask prices can sometimes be wide, so there is no guarantee there will be a fill at the current mid price.
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,