COST – 10/8/18 – Iron Condor
I liked the price action on COST and was able to get a pretty good premium (or at least I initially though so) with Implied Volatility at 34.04 so I decided to go with an Iron Condor.
On 10/8 with COST trading at 223.27 I sold the 11/16 $240 Call and purchased the $250 Call. I also sold the $210 Put and purchased the $200 Put.
Remember above when I said I ‘thought’ I got a pretty good premium. Well, I forgot to take into account that the spread was $10.00 wide on this one. In actuality this was not a great trade for the risk.
My break even was $208.55 and $241.44 and I had a 68.68% chance of success.
On 11/12 after 39 days my GTC was hit and the trade closed for a $65.00 profit. This was a return of 7.56% because my risk was $860.00, this is what I meant by not really as good of a trade as I thought.
| Date | EXP | Strike | Price | Ct | C/P | Cost | Balance | |
| 10/08/18 | SO | 11/16/18 | $240.00 | $0.77 | 1 | C | $77.00 | $77.00 |
| 10/08/18 | BO | 11/16/18 | $250.00 | $0.25 | 1 | C | -$25.00 | $52.00 |
| 10/08/18 | SO | 11/16/18 | $210.00 | $1.61 | 1 | P | $161.00 | $213.00 |
| 10/08/18 | BO | 11/16/18 | $200.00 | $0.69 | 1 | P | -$73.00 | $140.00 |
| 11/12/18 | BC | 11/16/18 | $240.00 | $0.68 | 1 | C | -$68.00 | $72.00 |
| 11/12/18 | SC | 11/16/18 | $250.00 | $0.04 | 1 | C | $4.00 | $76.00 |
| 11/12/18 | BC | 11/16/18 | $210.00 | $0.11 | 1 | P | -$11.00 | $65.00 |
| 11/12/18 | SC | 11/16/18 | $200.00 | $0.04 | 1 | P | $0.00 | $65.00 |
| Profit of: | $65.00 |
