RUT price has traded in a narrow range so I was able to let my last contract expire worthless. Overall this was a nice trade with little movement.
5/12 STO 3 RUT JUN 570/580 Call $0.80
5/12 STO 3 RUT JUN 410/400 Put $0.85
6/3 BTC 2 RUT JUN 570/580 Call $0.50
6/3 BTC 2 RUT JUN 410/400 Put $0.12
6/19 expire worthless 1 RUT JUN 570/580 Call
6/19 expire worthless 1 RUT JUN 410/400 Put
Total realized profit is $371
Total risk was $2505
14.8% ROI
Saturday, June 20, 2009
RUT Iron Condor Hi Prob June Update #2
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3 comments:
Just curious why you choose a $10 spread on each leg of the condor. SInce each leg (i.e. spread) is far out of the money, seems like you can capture a larger net premium by choosing a wider spread. COuld be totally wrong here...
There are several reasons why I like $10 spread instead of $20 or more.
1. $10 spread has a higher chance of getting filled compared to $20 spread. Most people trade $10. More volume equals faster fills.
2. Premium ROI decreases as the spread gets wider. You begin to lose a few cents the further out you go.
3. I like to leg out of the position a few contracts at a time. So using $10 wide spread allows for more contracts.
If you still have question please email at aroyale15@yahoo.com
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