Yesterday during a webinar with Ally Invest, I put on an Iron Condor in Sep 27 expiration, 46 days out and with 5 wide credit spreads. Sold 3070 Call and Bought 3075 Call. Sold 2660 Put and Bought 2655 Put. Total Credit $1, and Risk $400. Looking for 10 percent profit on $400 of risk or Capital and don’t want to lose more than 15% of $400.
NFLX 374.20 around 11:20 central on Monday June 24. Buy 1 July 19, 375 Put and Sell 1 July 5, 375 Put for $9.31 Debit, Margin/Risk $931. Earnings are the week of July 15-19, probably July 17. NFLX has been range bound since late Jan-early Feb, between $335-$385. Looking for that to continue till it doesn’t! We are buying an expiration affected by earnings and selling an expiration that will expire before earnings. The Implied Volatility of long strike should stay high and go higher and Implied Volatility of Short should not go up much and eventually go down. Goal is to get out of trade by Friday. Looking for 7-10 % return on Capital of $931 and don’t want to lose more than 10-12% of the Risk/Margin of $931. Will take off trade for profit of around 8% when the spread goes to around $10.05. If spread narrows because of a big price move, will exit spread for around an 10-12% loss when the Spread trades $8.30.
Our 9th annual Chicago Seminar with 13 speakers is September 5-6 at the beautiful Gleacher Center in Chicago. We are running a special bonus this week for those who attend live, clink on the link below for more information:
Thanks, Dan Sheridan email@example.com