AMAT – 9/10/18 – Broken Wing Iron Condor
On 9/10 AMAT had moved down to what I really felt would be a good support area so I decided to enter a Broken Wing Iron Condor figuring this trade would head back up.
Because I entered this trade at about a $1.43 credit, since my Calls were 1 point away that meant that if AMAT finished anywhere above $40.00 the least I would make if held to expiration was $43.00.
With AMAT trading at $39.54 I sold the 10/19 $40 Call and purchased the $41 Call to cover it. I also sold the 10/19 $39 Put and purchased the $34 Put to finish out my Broken Wing Iron Condor. My credit was $143.00 and based on my $5.00 Put spread my risk was $357.00 to the downside and none to the upside.
If we held to expiration we would want this traded to close between $39 and $40 for a max profit of $143.00 but since we always put in a GTC order I wanted to try for about a $50.00 profit at any point during this trade. Initially, this trade was showing a 67% probability of success.
Almost from the beginning this trade did not cooperate with me and was showing a loss most of the time. On 10/2 it had a pretty big up day which gave me the opportunity to close for a profit, so I took it.
I ended up with a $26.00 profit after 22 days on my risk of $357.00 which is a 7.28% return.
I closed this position with AMAT trading at $39.14.
| Date | EXP | Strike | Price | Ct | C/P | Cost | Balance | |
| 09/10/18 | SO | 10/19/18 | $40.00 | $1.47 | 1 | C | $147.00 | $147.00 |
| 09/10/18 | BO | 10/19/18 | $41.00 | $1.05 | 1 | C | -$105.00 | $42.00 |
| 09/10/18 | SO | 10/19/18 | $39.00 | $1.26 | 1 | P | $126.00 | $168.00 |
| 09/10/18 | BO | 10/19/18 | $34.00 | $0.21 | 1 | P | -$25.00 | $143.00 |
| 10/02/18 | BC | 10/19/18 | $40.00 | $0.67 | 1 | C | -$67.00 | $76.00 |
| 10/02/18 | SC | 10/19/18 | $41.00 | $0.35 | 1 | C | $35.00 | $111.00 |
| 10/02/18 | BC | 10/19/18 | $39.00 | $0.86 | 1 | P | -$90.00 | $21.00 |
| 10/02/18 | SC | 10/19/18 | $34.00 | $0.05 | 1 | P | $5.00 | $26.00 |
| Profit of: | $26.00 |
