FXE – 10/3/18 – Broken Wing Iron Condor

FXE – 10/3/18 – Broken Wing Iron Condor

When I can find opportunities I like to trade FXE because it trends well. Finding premium can be a challenge, however.

On 10/3 with FXE trading at $110.26 and Implied Volatility at 54.75 I was able to get into a Broken Wind Iron Condor with no upside risk and a probability of success of about 73.26%. My breakeven on the down side was at $108.70.

I sold the 11/16 $110 Call and purchased the $111 Call while selling the $110 Put and buying the $106 Put to cover it for a credit of $1.28. My risk was $272.00 to the downside, and $0.00 to the upside. I put in a GTC order for $.62 and waited.

FXE did not cooperate with my great plans to make money. It moved down consistently showing losses on the trade. On 11/8 I got a spike up so after 36 days I decided to close the trade for small profit.

I made $18.00 on my $272.00 risk or about 6.62%.

Date EXP Strike Price Ct C/P Cost Balance
10/03/18 SO 11/16/18 $110.00 $1.44 1 C $144.00 $144.00
10/03/18 BO 11/16/18 $111.00 $0.93 1 C -$93.00 $51.00
10/03/18 SO 11/16/18 $110.00 $0.93 1 P $93.00 $144.00
10/03/18 BO 11/16/18 $106.00 $0.16 1 P -$20.00 $124.00
11/8/18 BC 11/16/18 $110.00 $0.25 1 C -$25.00 $99.00
11/08/18 SC 11/16/18 $111.00 $0.05 1 C $5.00 $104.00
11/08/18 BC 11/16/18 $110.00 $0.83 1 P -$83.00 $21.00
11/08/18 SC 11/16/18 $106.00 $0.01 1 P -$3.00 $22.00
Profit of: $18.00

 

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