10/20/21 Closing Instructions – We are at about 50% of our profit target, so I’ve closed this one out in 2 separate trades because the 4 legs were not filling at my asking price. 19% ROI.
Closing Order #1, for $50 debit
- Buy to close the Nov 19 190 call
- Sell to close the Nov 19 195 call
Closing Order #2, for 33 debit
- Sell to close the Nov 19 100 put
- Buy to close the Nov 19 105 put
Based on $350 of buying power, the $150 we collected on entry, and the $83 we gave back to close, that’s 19% ROI.
– Jerry
What’s the trade?
Sell a 5 dollar wide Iron Condor 100/105/190/195 in AFRM for $150 credit or greater.
With AFRM trading at 135 on 10/11:
- Buy the Nov 19 100 put
- Sell the Nov 19 105 put
- Sell the Nov 19 190 call
- Buy the Nov 19 195 call
- Premium: Try to collect at least $150
- Rationale: This is a defined risk trade. You can make up to $150 if AFRM stays between 105-190 on expiration. AFRM has an IV Rank of 73.4% which increases the premium you will collect. This trade collects $1.85 in theta decay each day.
- Probability of making 75$: 75%
- Max Loss: $350
- Assumption: Neutral
Timeframe: ~1-4 weeks
