Recommended trade entry for Thursday, September 28
Option Code: SPXW171006
Expiration: Friday, October 6
Recommended Trade Entry:
We have all been waiting, and waiting, for the VIX to rise to a level which would allow us to get more premium on the weekly Iron Condor. The market continues to grind up, and for the moment fear does not seem to be in the cards. We don't know when volatility will ramp up, so in the meantime we will continue to trade the SPX weekly Iron Condor, and get as wide as we can for the minimum $1.25 credit.
As always, it is a trader's choice whether to take the trade or continue to sit on the sidelines. For those entering with live capital, it is recommended to be extra-vigilant if the market moves against the position and keep stop losses in place if you cannot monitor the market.
- SELL SPX October 6 2530 Call, currently $1.50. Delta of short call: .13.
- BUY SPX October 6 2540 Call, currently $.70.
- SELL SPX October 6 2460 Put, currently $ 2.50. Delta of short put: -.13.
- BUY SPX October 6 2450 Put, currently $1.95.
It is recommended to place the order as a single entry: SELL " Iron Condor".
Current mid price for all four legs: $1.35. 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,