AMAT 9-10-18 Broken Wing Iron Condor

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

 

 

Share and Enjoy !

0Shares
0 0

Leave a Reply

Your email address will not be published. Required fields are marked *