October Iron Condor Closed

Filed under: iron condor — optionwinner at 5:24 pm on Tuesday, September 23, 2008

Months from now, we’ll look back and proudly say we survived September 08. Having a trade on this month does give one some boasting rights. Coming out from it unscathed deserves a beer.

Iron condor can be very nasty strategy to trade when things turn volatile, like during a 60 points 5% drop. The drop in index coupled with an IV spike can quickly turn a profitable position to a losing one. Our bullish put was in trouble the morning of the drop (15 Sep 2008), rising from 0.30 the previous day to a morning high of 2.50. We managed to close the trade at 1.80 on a retracement.

Our Bear Call Puts spread was closed 3 days later at 0.20.

Our October Iron Condor yielded a profit of 1.15 (1.70+1.45-1.80-0.20) or 5.2%

Better luck next month !

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