July 28, 2017

January 2008 Trade Summary – SPX Iron Condor

We were finally  able to get the SPX Iron Condor trade off this afternoon. The details are below. For those of you who subscribe to the Iron Condor strategy please check the Insider’s page of the website for more detailed information on the trade.

I also wanted to let all of you know that I will be taking the next two trading days off (Friday and Monday). Of course, I will be keeping an eye on the market, but I will not be answering emails or posting to the blog. I typically take this time off to reflect on the prior year by writing my year end summary for subscribers. This allows me a few days of much needed downtime to take a break from the rigors of trading. We all need a break once and a while and I think two days away from the screen a year is not much to ask. Again, I will not be answering any emails until after the New Year.

See you in 2008! Have a wonderful and safe New Year. I can’t wait to get started next year. We will be expanding our offerings in the newsletter (mostly European Style Iron Condors and the return of the Gap Fade strategy).

Most of all, I want to thank you all of you again for all of the kind words over the past year. The service has taken off over the past two years and we hope to make it even better and prosperous in 2008.

The following is the January ’08 expiration cycle trade for the SPX Iron Condor strategy.

I have to admit that I have never had such a difficult time getting a trade off on an Iron Condor trade. The holidays really caused some havoc for all of the spread traders out there, particularly the ones that prefer wide ranges. Volume was anemic all week which made it extremely difficult to get an order off plus the holidays were priced in which also led to lower prices. As I stated repeatedly, I was not willing to push a trade through just to have a position in play. I would rather not have a trade on if that was the case as the Iron Condor strategy is a marathon and not a sprint. Of course we could have decreased our range to possibly bring in more premium, but that goes against what this strategy is about, especially since we adjusted the strategy on 8/28/07.

I am still enthused by the results as the strategy will make 4.6% over the next three weeks. However, $.50 is the low limit that I will take for an Iron Condor spread. Anything less than $.50 and I just can’t rationalize placing a trade.

Again, we certainly like the odds on this trade. If the underlying SPX expires within our chosen range (1360 – 1590) the strategy stands to make 4.6% over the next three weeks (options expiration).

Please do not hesitate to email us with any questions or comments that you might have regarding the strategy.

We placed the following trade:

Sell to open SPX Jan08 1590 calls

Buy to open SPX Jan08 1600 calls

Sell to open SPX Jan08 1360 puts

Buy to open SPX Jan08 1350 puts for a credit of $.50

Have a wonderful and safe New Year!!!

Andrew