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Friday, July 6, 2018

SPX Iron Condor (options)

Friday, 7/6/2018 (EXPIRATION DAY)

Trade 1 (10:29:07 am, PT)

sell -4 July 6, 2018  2755 puts at $1.30 (delta 24.22)
buy +4 July 6, 2018  2720 puts at $0.05 ("wings")

  • net credit: $1.25 x 4 x 100 = $500 (max profit)
  • margin:  $13,559
  • this is a semi-bullish trade


Trade 2 (12:25:29 pm, PT)

buy +4 July 6, 2018  2775 calls at $0.05 ("wings")
sell -4 July 6, 2018  2765 calls at $1.00 (delta 37.41)

  • net credit:  $0.95 x 4 x 100 = $380 (max profit)
  • this is a semi-bearish trade


Trade 3 (12:41:43 pm, PT)

  • buy back 2765 calls at $0.10 to remove the risk
  • let long calls (2775 strike) expire worthless


Trade 4 (12:56:58 pm, PT)

  • buy back 2755 puts at $0.10 to remove the risk
  • let long puts (2720 strike) expire worthless


Comments:

  • at 12:27 pm (PT), when SPX was at 2764.41, I could have bought back my short puts (2755 strike) at $0.15 and be done, but I got greedy and didn't want to pay $0.15 ($60 for 4 contracts) ..... 
  • BAD DECISION!  😱😱

  • suddenly SPX started dropping and hit a low of 2755.16 at 12:50 pm (PT) ..... that's only 0.16 from my short strike of 2755  😖😰😲

  • at this point, the premium for the 2755 put jumped to $1.20 and my lovely profit of $440 (at 12:27 pm) suddenly turned into a profit of only $20 😭😭😭

  • STRESS!  STRESS!  STRESS!

  • I was VERY lucky that SPX reversed back up after hitting the low of 2755.16 and I was able to buy back those short puts (2755 strike) at $0.10 😅😅


TOTAL PROFITS:  $800  😁

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