XOP – 9/24/18 – Broken Wing Iron Condor
XOP was trading at $43.22 and I thought a move down or a sideways move was the most likely outcome over the next month or so. I entered this trade with no downside risk and an upside break even of $45.57.
When I entered this one Implied Volatility was at 13.40 and moving down which is good. It was also showing a 71.7% probability of success.
I sold the 11/16 $44 Call and purchased the $48 Call. I sold the $44 Put and bought the $43 Put. My max risk was $486.00 with a max profit potential of $306.00. I set a GTC order to keep about $80.00 of the potential.
On 10/11 XOP was down big at $41.16 and my trade was showing a profit. Probability of success is now 82%.
On 10/18 my GTC order hit as XOP was bouncing off of a bottom and moving back up.
I closed for a profit of $78.00 or 16.05% over 24 days.
| Date | EXP | Strike | Price | Ct | C/P | Cost | Balance | |
| 09/24/18 | SO | 11/16/18 | $44.00 | $1.37 | 2 | C | $274.00 | $274.00 |
| 09/24/18 | BO | 11/16/18 | $48.00 | $0.29 | 2 | C | -$58.00 | $216.00 |
| 09/24/18 | SO | 11/16/18 | $44.00 | $2.05 | 2 | P | $410.00 | $626.00 |
| 09/24/18 | BO | 11/16/18 | $43.00 | $1.56 | 2 | P | -$320.00 | $306.00 |
| 10/18/18 | BC | 11/16/18 | $44.00 | $0.32 | 2 | C | -$64.00 | $242.00 |
| 10/18/18 | SC | 11/16/18 | $48.00 | $0.07 | 2 | C | $14.00 | $256.00 |
| 10/18/18 | BC | 11/16/18 | $44.00 | $3.74 | 2 | P | -$748.00 | -$492.00 |
| 10/18/18 | SC | 11/16/18 | $43.00 | $2.89 | 2 | P | $570.00 | $78.00 |
| Profit of: | $78.00 |
