New Trade – Iron Condor

Stock Symbol: [private_monthly]SPY[/private_monthly]

Price at time of Trade: [private_monthly]$107.61[/private_monthly]

Target Price: [private_monthly]102 to 111[/private_monthly]

Strategy: Iron Condor using weekly options which expire on 8/27/10
Risk: lower
Reward: limited

Reasoning:Expect that [private_monthly]the S&P 500[/private_monthly] is currently neutral and will not break below [private_monthly]102[/private_monthly] (a 5% move) or above [private_monthly]111[/private_monthly] (a 3.3% move) before this Friday when these options expire. After commissions, this trade will net us a 2.62% gain in just one week. Not a very sexy trade but if we can do a trade like this once a week, that's a 10.5% monthly return which is over our stated monthly return goal of 5 - 8%.

Trade Details:[private_monthly]

Buy 10 SPY AUG10 100 PUT $0.06 $60.00
Sell -10 SPY AUG10 102 PUT $0.11 ($110.00)
Sell -10 SPY AUG10 111 CALL $0.08 ($80.00)
Buy 10 SPY AUG10 113 CALL $0.03 $30.00

Cost/Proceeds ($100.00)
Option Requirement $2,000.00
Total Requirements $1,900.00
Estimated Commission $50.00



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