Yesterday marked my first day of trading in the new position. For my first trade I sold an Iron Condor on RBOB
I sold 31.96/2.00/1.80/1.76 October Iron Condors. These options expire on 9-27-10, leaving about 35 days to expiration. I collected .0215 from the sale. The multiplier on the RBOB contract is 42,000 gallons. So I collected a total of $2,709 on a risk of $5,040, or 54% on risk.
I profit on this trade in the range of 1.7785-1.9815, a 20ct range.
I will keep you posted.
I am still just holding and waiting for time decay. There is now 26 days until expiration and RBOB is trading at 1.90. If it trades high enough I may try to lift the put spread which I originally sold for 1.5cts and it is currently at 0.87cts. I would look to buy it back if I can get 80-90% of the time value.
ReplyDeleteOn the upside of this I think RBOB has resistance at 1.93 and then at about 196.50. Up near these prices if we get there I will look to sell futher OTM call spreads.
Otherwise I am just patiently waiting.
Do you have a GTC in to capture 90% of the time value?
ReplyDeleteToday I closed this one out for a breakeven trade. I liked it when I put it on a few weeks ago but with the equity markets rallying and this thing bouncing up against the short call I have sold. I am not as confident that this thing will finish in my desired range by expiration. It along with equities look to possibly be setting up for a break out in the short term. I will be looking to sell call spreads at higher prices in the coming days.
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