SPX – 9/17/18 – Iron Condor

 

SPX – 9/17/18 – Iron Condor

This was one of my most difficult trades of the year. It was an SPX Iron Condor which I have pretty strict rules for trading but it was moving up and then down so fast that I struggled to trade my rules.

On 9/17 with SPX trading at $2902.00 I entered an Iron Condor expecting easy profits like I had seen throughout the year trading these. I started the trade by selling the $3020.00 Call and buying the $3035.00 Call to cover while selling the $2675.00 Put and buy the $2660.00 Put to cover it.

On 9/20 SPX spiked up to $2932.00 putting my short Call delta at 20, I try to adjust around 30.

On 10/3 SPX was up to $2937.39 but my short Call delta had dropped a little to 18 as the market was slowing down and time had passed.

By 10/11 SPX had dropped from $2937.39 to $2771.00, my Calls were fine now but my short Put was in trouble with a delta of 28 which increased to 31 during that day.

On 10/12 I was able to roll my Puts from from 11/16 to 12/7 and from 2675/2660 to 2650/2630. I increase the spread from 15 to 20 which increased my risk for a net credit which was nice, except for the increased risk! But at least I managed to move the short Put down from 2675 to 2650.

On 10/23 SPX moved against me again down to $2700.00. I rolled my Calls down 100 points and increased their spread from 15 to 20 to match my calls to bring in a credit in order to adjust my Puts again.

I then rolled my Puts down another 50 points from 2650/2630 to 2600/2580 and my expiration from 12/7 to 12/14. I was still able to bring in a net credit from my 10/23 rolls.

On 10/25 SPX spiked down yet again to $2648.00, my short Put delta spiked up to 33 (over my 30 adjustment level). However, because I had moved down twice already I really felt the market might cooperate and move up for me. By the end of the day the market had bounced up to $2686.00 and my short Put delta was now right at 30.0

On 10/26 SPX moved down to $2640.00 and I decided to Puts down again and from 12/14 to 12/21 from 2600/2580 to 2570/2550. Surely this would be enough! I kept my Calls where they were because I still had a credit on this trade and was afraid it would make a rapid move up.

On 11/8 SPX spiked up to $2811.00 bid and my Calls were now moving toward a 30 delta on my short Call.

On 11/18 SPX had begun to pull back. I decided to roll my Call out so they would be on the same expiration as my Puts (makes closing easier) but did not roll them up. I rolled my Calls from 12/14 to 12/21 expiration.

On 11/20 SPX had dropped big over the past couple of days an my short Put delta was at 33. I decided to wait and see because of how much I had moved down already. I really felt the market was WAY oversold and there just could not be that much downward pressure left.

On 11/26 my GTC order FINALLY hit and I closed at about break even. Remember, once I make a single adjustment I move my GTC to break even to just get out of the trade as soon as possible.

I ended up with a $24.00 profit on a risk of $5001.00 or about 0.48% over 70 days. Of course, the profit here is not what is important. What is important is that I kept from losing money and came very close to following my trading rules.

When my trade finally closed SPX was at $2673.00.

Date EXP Strike Price Ct C/P Cost Balance
09/17/18 SO 11/16/18 $3,020.00 $5.24 3 C $1,572.00 $1,572.00
09/17/18 BO 11/16/18 $3,035.00 $3.97 3 C -$1,191.00 $381.00
09/17/18 SO 11/16/18 $2,675.00 $10.74 3 P $3,222.00 $3,603.00
09/17/18 BO 11/16/18 $2,660.00 $9.96 3 P -$3,000.00 $603.00
10/12/18 BC 11/16/18 $2,675.00 $34.96 3 P -$10,494.00 -$9,891.00
10/12/18 SC 11/16/18 $2,660.00 $31.69 3 P $9,507.00 -$384.00
10/12/18 SO 12/07/18 $2,650.00 $39.99 3 P $11,997.00 $11,613.00
10/12/18 BO 12/07/18 $2,630.00 $36.07 3 P -$10,827.00 $786.00
10/12/18 BC 11/16/18 $3,020.00 $0.80 3 C -$246.00 $540.00
10/12/18 SC 11/16/18 $3,035.00 $0.65 3 C $195.00 $735.00
10/12/18 SO 12/07/18 $2,980.00 $3.50 3 C $1,050.00 $1,785.00
10/12/18 BO 12/07/18 $3,000.00 $2.60 3 C -$786.00 $999.00
10/23/18 BC 12/07/18 $2,980.00 $1.03 3 C -$315.00 $684.00
10/23/18 SC 12/07/18 $3,000.00 $0.73 3 C $219.00 $903.00
10/23/18 SO 12/14/18 $2,880.00 $7.20 3 C $2,160.00 $3,063.00
10/23/18 BO 12/14/18 $2,900.00 $5.20 3 C -$1,566.00 $1,497.00
10/23/18 BC 12/07/18 $2,650.00 $56.27 3 P -$16,887.00 -$15,390.00
10/23/18 SC 12/07/18 $2,630.00 $50.54 3 P $15,162.00 -$228.00
10/23/18 SO 12/14/18 $2,600.00 $47.29 3 P $14,187.00 $13,959.00
10/23/18 BO 12/14/18 $2,580.00 $42.86 3 P -$12,864.00 $1,095.00
10/26/18 BC 12/14/18 $2,600.00 $55.65 3 P -$16,701.00 -$15,606.00
10/26/18 SC 12/14/18 $2,580.00 $50.05 3 P $15,015.00 -$591.00
10/26/18 SO 12/21/18 $2,570.00 $52.05 3 P $15,615.00 $15,024.00
10/26/18 BO 12/21/18 $2,550.00 $47.20 3 P -$14,166.00 $858.00
11/18/18 BC 12/14/18 $2,880.00 $16.26 3 C -$4,878.00 -$4,020.00
11/18/18 SC 12/14/18 $2,900.00 $10.89 3 C $3,267.00 -$753.00
11/18/18 SO 12/21/18 $2,880.00 $21.19 3 C $6,537.00 $5,604.00
11/18/18 BO 12/21/18 $2,900.00 $15.02 3 C -$4,518.00 $1,086.00
11/26/18 BC 12/21/18 $2,880.00 $1.10 3 C -$330.00 $756.00
11/26/18 SC 12/21/18 $2,900.00 $0.75 3 C $225.00 $981.00
11/26/18 BC 12/21/18 $2,570.00 $17.85 3 P -$5,355.00 -$4,374.00
11/26/18 SC 12/21/18 $2,550.00 $14.70 3 P $4,422.00 $24.00
Profit of: $24.00

 

Share and Enjoy !

0Shares
0 0

Leave a Reply

Your email address will not be published. Required fields are marked *