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closed Positions

spy: 03.03.20 – 03.30.20

ETF | S&P 500 | Status: Closed

Opening Trade

03.03.20
It's been a wild day today. This morning the market opened up before flattening out a bit. Suddenly, the market went wild with an absolutely massive rally out of nowhere. Apparently the Federal Reserve announced a surprise cut in interest rates. The rally did not last long and in fact, almost completely reversed the impressive gains we saw at the end of yesterday. The market sort of bounced up and down all day, and then in the last couple hours panic selling started to take place. The
/VX shot up over 12% and in that spike I decided I wanted to
a little
to take further advantage of elevated prices.
I feel pretty comfortable with the amount of
I have on right now and want to be careful about adding too much more.
are a nice
strategy which allows me to trade bigger products comfortably. I decided to sell the April 17 259/264/322/327 iron condor in SPY, the
that tracks the
I was able to get super wide which is the benefit of high
and still collect a solid amount of
I received a $1.71 credit for this $5.00-winged spread which puts my max potential loss at $3.29. This is a risk-two-for-one scenario which puts my odds of profit right around the 60-66% range. I'm looking to close this for about 50% of the $1.71 max potential, which would be around $0.85. This strategy should benefit nicely from any volatility contraction as well as the passage of time.
PS. Please excuse the wonky risk profile. SPY is a higher-priced product which forced me to do some funky scaling to get it to fit XX

Risk Profile:

Figure 1

Strategy: Short APR 17 259/264/322/327 Iron Condor

bto 1 apr 17 259 put
sto 1 apr 17 264 put
sto 1 apr 17 322 call
bto 1 apr 17 327 call
Fill Price: $1.71 credit

Position Analysis

U/L Price: $300.41
IV: 32.4%
IVR: 73.5
Liquidity: 4/4
Position: Short APR 17 259/264/322/327 Iron Condor
POP: 63%
Cost Basis: $1.71
Risk: Undefined
BPR: $500
Max Profit: $1.71
Max Loss: $3.29
Target P/L: $0.85
Break Even(s): $262.29, $323.71
Extrinsic Value: $171.00
Net Delta: -4.30
Net Theta: 2.844

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