XOP 9/24/18 Broken Wing Iron Condor

XOP – 9/24/18 – Broken Wing Iron Condor

XOP was trading at $43.22 and I thought a move down or a sideways move was the most likely outcome over the next month or so. I entered this trade with no downside risk and an upside break even of $45.57.

When I entered this one Implied Volatility was at 13.40 and moving down which is good. It was also showing a 71.7% probability of success.

I sold the 11/16 $44 Call and purchased the $48 Call. I sold the $44 Put and bought the $43 Put. My max risk was $486.00 with a max profit potential of $306.00. I set a GTC order to keep about $80.00 of the potential.

On 10/11 XOP was down big at $41.16 and my trade was showing a profit. Probability of success is now 82%.

On 10/18 my GTC order hit as XOP was bouncing off of a bottom and moving back up.

I closed for a profit of $78.00 or 16.05% over 24 days.

Date EXP Strike Price Ct C/P Cost Balance
09/24/18 SO 11/16/18 $44.00 $1.37 2 C $274.00 $274.00
09/24/18 BO 11/16/18 $48.00 $0.29 2 C -$58.00 $216.00
09/24/18 SO 11/16/18 $44.00 $2.05 2 P $410.00 $626.00
09/24/18 BO 11/16/18 $43.00 $1.56 2 P -$320.00 $306.00
10/18/18 BC 11/16/18 $44.00 $0.32 2 C -$64.00 $242.00
10/18/18 SC 11/16/18 $48.00 $0.07 2 C $14.00 $256.00
10/18/18 BC 11/16/18 $44.00 $3.74 2 P -$748.00 -$492.00
10/18/18 SC 11/16/18 $43.00 $2.89 2 P $570.00 $78.00
Profit of: $78.00

 

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