NKE – 10/2/18

NKE – 10/2/18 – Iron Condor

NKE had a big earnings Implied Volatility drop after earnings but still looked pretty good for an Iron Condor. I could have gotten more premium trading before earnings but there is a huge risk doing that, which is why you get more premium.

On 10/2 I sold the 11/16 $87.50 Call and purchased the $92.50 Call to cover. I also sold the $80.00 Put, purchasing the $75.00 Put to cover with NKE trading at $83.15. I was taking a little more risk to the downside base on the Delta of the short Put but felt it would workout.

The trade did not go well as NKE continued to fall. On 11/9 I found myself with a negative trade that I either needed to roll or close for a loss. I was going on a trip and had not planned to hold any trades on the 11/16 expiration since I would be gone. So … here I was.

On 11/14 with NKE trading at $75.20 I finally decided to close for a loss because I could not find a roll that I could get for a credit.

I closed after 43 days for a loss of $268.00 on an initial risk of $358.00 or 74.86%

Date EXP Strike Price Ct C/P Cost Balance
10/2/18 SO 11/16/18 $87.50 $0.96 1 C $96.00 $96.00
10/02/18 BO 11/16/18 $92.50 $0.26 1 C -$26.00 $70.00
10/02/18 SO 11/16/18 $80.00 $1.00 1 P $100.00 $170.00
10/02/18 BO 11/16/18 $75.00 $0.28 1 P -$32.00 $138.00
11/14/18 BC 11/16/18 $87.50 $0.06 1 C -$6.00 $132.00
11/14/18 SC 11/16/18 $92.50 $0.05 1 C $5.00 $137.00
11/14/18 BC 11/16/18 $80.00 $4.04 1 P -$404.00 -$267.00
11/14/18 SC 11/16/18 $75.00 $0.05 1 P -$1.00 -$268.00
Loss of: -$268.00

 

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