Thursday, October 7, 2010

Income Trade Non directional Iron Condor for November expiration

This is a non directional income trade. We only adjust if our delta goes to 20. If you put up a similar trade please follow our blog closely incase we need to adjsut it. This trades returns 12.3% in a little over a month.


Instrument Russell 2000:RUT
20K Portfolio
Creadit Spread
Iron CondorSideQuantitySymbolExpStrikeTypeNet CreditTotal received
Sell10RUTNov770Call $          1.10  $    1,100.00
Buy10RUTNov780Call
Sell10RUTNov560Put
Buy10RUTNov550Put
Margin Required  $    8,900.00 Per 10 contracts
Net Credit $    1,100.00
Return12.360%
For $100k portfolios
Iron CondorSideQuantitySymbolExpStrikeTypeNet CreditTotal Received
Sell50RUTNov770Call $          1.10  $    5,500.00
Buy50RUTNov780Call
Sell50RUTNov560Put
Buy50RUTNov550Put
Margin  $  44,500.00
Net Credit $    5,500.00
Return12.3596%

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