EEM – 9/14/18 – Broken Wing Iron Condor

EEM – 9/14/18 – Broken Wind Iron Condor

On 9/14 EEM was trading at $41.99 and I decided to take a trade with no downside risk because if a Diagonal trade I had that was showing a loss. This was a hedge trade to protect my Diagonal to the downside.

I purchased the 10/26 $42 Call and sold the $45 Call. I sold the $42 Put and bought the $41 Put to finish out the Broken Wing Iron Condor. My max loss would be $338 and my break even to the upside was $43.31.

Just looking at this on its own merit I had a 68.27% probability of success if held to the expiration.

I closed this trade on 10/12 for a profit of $64.00 which went to offset some of my open loss on the Diagonal. This was a profit of 18.93% over 28 days.

Date EXP Strike Price Ct C/P Cost Balance
09/14/18 SO 10/26/18 $42.00 $1.14 2 C $228.00 $228.00
09/14/18 BO 10/26/18 $45.00 $0.18 2 C -$36.00 $192.00
09/14/18 SO 10/26/18 $42.00 $1.01 2 P $202.00 $394.00
09/14/18 BO 10/26/18 $41.00 $0.66 2 P -$140.00 $254.00
10/12/18 BC 10/26/18 $42.00 $0.15 2 C -$30.00 $224.00
10/12/18 SC 10/26/18 $45.00 $0.01 2 C $2.00 $226.00
10/12/18 BC 10/26/18 $42.00 $1.98 2 P -$396.00 -$170.00
10/12/18 SC 10/26/18 $41.00 $1.21 2 P $234.00 $64.00
Profit of: $64.00

 

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