SPY Iron Condor Look Back Trade

SPY – 07/19/2016

This is another trade you should not attempt. I traded this one in my virtual account to show how difficult it is to make a decent return with an EFT. I normally only do Iron Condors on indexes. The other thing I did here was a short term two week expiration which I do not recommend for Iron Condors. There are people that trade weekly or shorter term Iron Condors and make money, but I find it too difficult and you have to watch them constantly. Not the way I like to trade Iron Condors, if I have to defend one I am in a bad position already. With short term ones you will defend far to many.

With SPY trading at $215.80 I placed my Iron Condor by selling the 216.50 Call and covering it with the 217 Call. I also sold the 216 Put and purchased the 215.50 Put to cover it. Not a normally Iron condor set up with SPY at $215.80 but I thought it was going up.

In the end I did make money but it was more due to a drop in volatility than anything else. I sold the position at the best possible time and got lucky 14 days later. I made $310.00 not including commissions. If I traded this in my cheapest commission account I would have probable netted $260.00 because of the number of contracts. Still not a bad return but I have not found short term condors worth my time and effort as a whole.

Date

Sym

Action

Exp

Strike

Price

Cont

Type

Cost

Balance

07/16/16

SPY

BTO

8WK1

217

-$1.28

10

Call

-$1,280.00

-$1,280.00

07/16/16

SPY

STO

8WK1

216.5

$1.53

10

Call

$1,530.00

$250.00

07/16/16

SPY

STO

8WK1

216

$2.02

10

Put

$2,020.00

$2,270.00

07/16/16

SPY

BTO

8WK1

215.5

-$1.82

10

Put

-$1,820.00

$450.00

08/02/16

SPY

STC

8WK1

217

$0.45

10

Call

$450.00

$900.00

08/02/16

SPY

BTC

8WK1

216.5

-$0.55

10

Call

-$550.00

$350.00

08/02/16

SPY

BTC

8WK1

216

-$1.40

10

Put

-$1,140.00

-$790.00

08/02/16

SPY

STC

8WK1

215.5

$1.10

10

Put

$1,100.00

$310.00

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