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 |
