PBR – 9/20/18 – Iron Condor

 

PBR – 09/20/18 – Iron Condor

On 9/20 we decided to place an Iron Condor in PBR with its Implied Volatility at 63.04. Our initial trade probability was 75.67% which was better than normal for these types of trades, so we figured what could go wrong?

With PBR at $11.29 we sold the 11/2/18 $13.50 Call and purchased the $14.50 Call. We then sold the $9.00 Put and purchased the $8.00 Put to enter the trade with a total credit of $.36. We did increased contracts because the spread was only $1.00. In retrospect this was not a good trade, so you won’t see this one again.

On 10/24 PBR was trading at $15.60 and we were almost at max loss on this trade so we started seeing if we could find a roll for a credit. We got lucky and did.

We rolled out from 11/2/18 to 11/30/18 selling time. We were also able to roll up our calls from 13.50/14.50 to 14.00/15.00 increasing our chance of success.

On 11/30 (expiration day) we managed to close this trade with PBR trading at $14.27 for a small profit.

After 71 days we closed with a profit of $24.00 or 9.3% on our initial risk of $256.00

Date EXP Strike Price Ct C/P Cost Balance
09/20/18 BO 11/02/18 $8.00 $0.14 4 P -$56.00 -$56.00
09/20/18 SO 11/02/18 $9.00 $0.32 4 P $128.00 $72.00
09/20/18 SO 11/02/18 $13.50 $0.45 4 C $180.00 $252.00
09/20/18 BO 11/02/18 $14.50 $0.27 4 C -$108.00 $144.00
10/24/18 BC 11/02/18 $13.50 $2.27 4 C -$908.00 -$764.00
10/24/18 SC 11/02/18 $14.50 $1.42 4 C $568.00 -$196.00
10/24/18 BC 11/02/18 $9.00 $0.01 4 P -$4.00 -$200.00
10/24/18 SC 11/02/18 $8.00 $0.00 4 P $0.00 -$200.00
10/24/18 SO 11/30/18 $14.00 $2.12 4 C $848.00 $648.00
10/24/18 BO 11/30/18 $15.00 $1.44 4 C -$576.00 $72.00
10/24/18 SO 11/30/18 $14.00 $0.45 4 P $180.00 $252.00
10/24/18 BO 11/30/18 $13.00 $0.26 4 P -$104.00 $148.00
11/30/18 BC 11/30/18 $14.00 $0.29 4 C -$116.00 $32.00
11/30/18 SC 11/30/18 $15.00 $0.01 4 C $4.00 $36.00
11/30/18 BC 11/30/18 $14.00 $0.04 4 P -$16.00 $20.00
11/30/18 SC 11/30/18 $13.00 $0.01 4 P $4.00 $24.00
Profit of: $24.00

 

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