New Trade Entry: SPY Iron Condor for February Monthly Cycle; order filled.
Order executed for this month's SPY position:
- SOLD SPY February 280 Call, .75 credit.
- BOUGHT SPY February 285 Call, .17 debit.
- SOLD SPY February 264 Put, .74 credit.
- BOUGHT SPY February 259 Put, .48 debit.
Order was filled as an "Iron Condor" for $.84 net credit (all four legs) .
Margin/Risk is calculated by the width of the wings ($500), less credit received.
Margin/Risk for this trade: $416
Target Gain: 10% of margin/risk.
Max loss: 15% of margin/risk.
Below is the risk graph of this position:
SPY February Iron Condor:
Below is the SPY chart showing the short strikes:
SPY 6 month chart
The guidelines call for the position to remain open until target gain is reached, as long as SPY stays between the short strikes. They also call for exiting at the pre-set max loss, or if SPY reaches either short strike. It is recommended to have a "good to cancel" conditional order in to exit the position for target gain or max loss. Please follow your broker's specific guidelines on the setup of conditional orders as they can vary by broker.
Trade updates will be posted as appropriate.
As always, stay keen on your risk management and trade carefully,