This is a short Iron condor Example for Accounts that can't do naked options. Instead of a Strangle We can buy the wings ($5 wide minimum) and make it an Iron Condor. This will defined our risk and our capital need it for the trade is just $325.
This is a neutral strategy with a little downward skew given the rally the last couple of days.
Sold: 147 Put 168 Call
Bought: 142 Put 173 Call
38 Days to expiration for 1.75
Max win is $175 Max loss is $325
Delta 20 with $5 Wings
Our Break evens: 145.25 169.75
Probability of profit = 60%
Dagangan aktif
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Just made a video explaining How this is the first trade for a small portfolio.