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Showing posts with label SPX July 20 2018 2775/2800/2805/2820 iron condor. Show all posts
Showing posts with label SPX July 20 2018 2775/2800/2805/2820 iron condor. Show all posts

Friday, July 20, 2018

SPX iron condor options trade

Friday 7/20/2018 (Expiration Friday)

Trade 1 (10:03:01 am, PT)

sell -4 July 20, 2018  2800 puts at $0.95 (credit)   20 delta (acceptable)
buy +4 July 20, 2018  2775 puts at $0.05 (debit)

net credit:  $0.90 x 4 x 100 =  $360 (max profit)
this is a semi-bullish trade


Trade 2 (10:45:47 am, PT)

buy +2 July 20, 2018  2820 calls at $0.05 (debit)
sell -2 July 20, 2018  2805 calls at $2.15 (credit) ← 51 delta (high!)

net credit:  $2.10 x 2 x 100 =  $420 (max profit)
this is a semi-bearish trade


Trade 3 (10:57:07 am, PT)

buy back the 4 short puts (2800 strike) at $0.65 to remove the risk (I got scared!!)


Trade 4 (12:22:11 pm, PT)

buy back the 2 short calls (2805 strike) at $0.35 to remove the risk (I got scared again!!)


COMMENTS:

  • at 11:05 am, PT (just 20 minutes after I sold my call spread) SPX hit a high of 2806.90 which meant that my short calls (2805 strike) were in-the-money 😨


  • at 11:38 am, PT, SPX hit a low of 2800.36 and I could have bought back my short calls (2805 strike) at $0.35 and closed the trade ..... but did I do it?  No!  Because I was greedy ..... ðŸ˜¨


  • at 11:49 am, PT, SPX rose all the way back up to 2804.16, only $0.84 from my short call strike of 2805  ðŸ˜¨ ..... now I was stuck ..... ðŸ˜¨


  • finally, at 12:22 pm, SPX came back down and I was able to buy back my short calls (2805 strike) at $0.35 and close the trade (I didn't want to mess around anymore!)


July 20 was quite the roller coaster ride, but I did make some money, so I'm thankful!

TOTAL PROFIT:  $450



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