With a small increase in the VIX today and FB still around 50 IV rank I added this trade to my FB positions to slowly start to have trades expiring in oct.
The trade:
Expiration date - Oct 20, 2017 Long 150 Put Short 155 Put Short 185 Call Long 190 Call
Price: $1.10 Max loss: $390 Probability of profit 67%
I think MAX loss is a little expensive for only 1 IC?.
AL_G2
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any new charts?
AlexanderGotay
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@Al_g, Sorry, haven't posted lately. I try to post a few.
AL_G2
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excellent so far.
synthius
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Great job.
AL_G2
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this is a conndor? or iron
?
AL_G2
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@Al_g, nevermind i see it in the comments below, i like this play and you paid a good price
Brackster
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Great work Alex, I will try to reverse engineer and learn whats going on here.
Thank you,
Brackster
AlexanderGotay
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@Brackster, Thanks for your comment. This is just a simple neutral strategy, as long as it stays between the two short call/put we make money (The profit zone is the green rectangle). The iron condor is the same as a Strangle strategy, but then you buy options further away from the money to reduce capital requirements and cap the max loss.