V – 9/13/18 – Broken Wind Iron Condor
This was part of a series of trades I did in V working different strategies to take advantage of V’s run up to highs and pull back. I felt there was more downward pressure and it would be difficult for V to break to new highs over the course of this trade.
I entered this trade with V at 147.29 with no downside risk and a break even on the upside of $153.69 which would have been a new 52 week high.
The implied volatility when I entered the trade was 15.88 and I was showing a 74% chance of a successful trade if held until expiration. My risk was $390.00 and my max profit would have been $360.00 in a perfect world but I only wanted about a third of that when I set my GTC order.
I purchased the 10/26 $152.50 Call while selling the $155.00 Call. On the Put side I sold the $150.00 Put and purchased the $149.00 Put.
On 10/8 after 25 days my GTC order was hit and I closed this trade for a $120.00 profit or 30.77%. I wish I had these types of trades everyday.