Here’s
a (very small) trade I just made. Note
this is not a recommendation, just something to think about.
Bought
RUT Nov 620/630; 810/820 Iron condor for a cash credit of $3.15.
RUT is currently trading near 738
Maximum profit is $315
Maximum loss is $685
Plan: To hold about two months and close when these
become the front-month options. In
reality, I expect to hold up to two weeks longer.
Sold the Nov 620/630 put spread @ $1.21
Sold the Nov 810/820 call spread @ $1.94
Delta: Nov 630 put has a delta of -13; the Nov 810
call has a delta of 21.
Note
that is position is not delta neutral. I
have a large portfolio of positions, so adding this one to the mix is suitable
for me. That does not mean it is
suitable for you.
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