2013 SPX Trade 12 (Iron Condor)

Bull put spread for next week!

1/2 position -2 SPX1490/1485 put spread
.10 delta
.30 gross credit per contract
No additional margin. Will create an iron condor along with our 1605/1610 call spread

Reasonings behind the spread:

Bad job numbers today but SPX 50 still rising upwards. It’s currently @ about 1530.

-2.5% below 1530 = 1491.75

Our spread is @ 1490. So not only SPX 50 day has to be breached next week, it will also have to slice right through it for another -2.5% before it hits our strike.

Odds are that a weak bounce will occur at spx 50 day MA that should last a few trading sessions.

This trade expires in only 5 trading days. So time is on our side.

Good luck to everyone!

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5 responses to “2013 SPX Trade 12 (Iron Condor)

    • Thanks! Still watching the RUT. I’m interested in doing live trades in it but its much more Volatile than spx.

      • Very much so! I know IWM etf is popular like the SPY for day trading. I see that we are holding so far in a controlled sell-off (?)

      • Yea those are the two most liquid indexes. I trade the spx instead of spy for commissions reasons mainly. I pay $1 a contract flat with TOS/TD and its cheaper for me. If I start doing the RUT il probably trade the cash index probably. Are you familiar with the RUT? I’m not that familiar with how it trades. I know it recently made an all time high of 954.

      • I only watch the RUT or IWM to determine the ‘underlying” health of the markets. It can usually signal in advance whether something is up. Trading the indexes is smart. Commissions eat you alive otherwise! Etrade is expensive for options. Going to be switching soon though.

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