120919 RUT Iron Condors
I’ve been requested to follow a couple of RUT iron condors – a traditional 15-delta trade as well as a CTM (Close to the money) version.
The video contains the trade setup and entry.
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Another link to video
September 19, 2012
Traditional
Collected credit of $250 for the following Dec RUT Iron Condor:
Size: 2-lots
745/755P; 910/920C
CTMOrder entered: 4-lots $4.45 and lowered to $4.40. Nothing done. Will try again tomorrow.
Sep 20
Prices are not as good today.
945am; RUT = 850; RVX = 18
Collected $4.65 for the following RUT December iron condor (4-lots):
790/800P (28 delta)
900/910C (25 delta)
Sep 21
Trade Plans
Major points:
Exit target: Nov 19, 2012
Target Cost to exit: $100 and $200 to $250 (for CTM)
Target profit: $150 and ($215 to $265 for CTM)
Adjustment plan: 35 delta and roughly ATM (for CTM)
Much more detail and discussion in the videos below.
Traditional IC
CTM IC
Sep 27
RUT = 836
Traditional (15-delta) IC: The put delta is 19 and the call, 7. Not neutral, but no reason to modify this position. To exit, midpoint is roughly $4.10
CTM (25-delta): Deltas are 33 and 18. No problems yet. Exit midpoint: $4.25
Both showing small gains. No action recommended.
Oct 10
RUT = 830.17
RVX = 19.17
Traditional IC: Short deltas: 17 and 6; Quote to cover: 1.00 to 2.25. Nice profit so far (collected $250)
CTM IC: Short deltas: 33 and 14; Quote to cover: 3.05 to 4.45. (Collected $465)
No action necessary
Bidding 20 cents to cover 2 lots of 930/940C spread
Oct 16
Taking advantage of today’s rally to try to get our of these trades with a good profit
15-delta iron condor
Initial credit $2.50
Bought call spread at $0.24
Bidding $0.90 for put spread. (no urgency because delta of short put is 13)
CTM iron condor
Market is 2.80 to $4.00
Bidding $3.15 to exit. That would result in a profit of $150. Pretty good for holding less than one month.
Plans: If filled, I’ll move to a Jan position
Oct 23
Delayed adjustment. That is one of he beautiful things about an CTM iron condor. I could have delayed even longer.
Paid $1.70 to roll down to the 750/760P spread.
Oct 29
Bidding 15 cents for 4-lots of the Dec 900/910 C spread.
Neither put spread is in trouble pre-opening.
Nov 1
Closed 4-lots of Dec CTM iron condor.
RUT = 828.
RVX = 20.05
Paid $1.55.
Profit 1.40.
We had made one adjustment earlier.
Why the early exit?
1) Good profit
2) More importantly, the iron condor was slightly off-balance (delta 13 and 6) and was faring well on today’s rally. If I were forced to chose a market direction (I am not so forced), I would choose down. Thus, happy to exit.
Side note: To replace this trade in my portfolio, I added a Jan RUT iron condor. (That is not a trade I am tracking here, although it is mentioned in the forum)
Also getting close to exit for put spread on remaining portion of 2-lot iron condor.
Bidding 75 cents. Was bidding 90 cents on Oct 16.
November 15
The only remaining position is a 2-lot of puts. Originally part of a 15-delta iron condor. I had bid 90 cents to exit earlier, and looking back, that would have been a great fill.
9:02 am; RUT = 770, delta = 42
Decided to roll down and pay a debit.
Also decided that this 2-lot position is so small that I have room to increase position size. Note; Be very careful to increase size ONLY when you are well under your size and risk limit. Even then, the size increase is an option, not a necessity.
Trade:
Covered 2 dec 745/755P spreads @ $3.30
Sold 3 Dec 720/730P spreads @ $1.80; delta 21
Total cost $120.
Position cost: Short these three spreads with a net credit of $330, or $1.10 each.
Nov 20
8:31 am
Covered put spread (10-delta) at 64 cents.
This was a difficult trade to follow. It required adjustments and each side was in trouble at least one. Getting out with a profit is a great result. This trade earned 46 cents, before commissions
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