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 |
