Trade Adjustment : SPX

Stock / Symbol: S&P 500 Index / SPX

Option Strategy: [private_monthly]iron condor[/private_monthly]
Trade entry date: Jun 4
Price at trade entry: $1275
Price at this post: $1358

Current Position:

Long 1 SPX Ju112 1175 put
Short -1 SPX Ju112 1185 put
Short -1 SPX Ju112 1385 call
Long 1 SPX Ju112 1395 call
for a net credit of $2.53 per contract

A: SPX has hit our upside stop, so we're adjusting. Our current call spread has a Delta of .32 and a 30% probability of expiring in the money. We're going to roll to a further out of the money calls spread, [private_monthly]the 1410/1420. With a delta at .15, the 1410 call improves our odds on the trade with a 86% probability of expiring worthless. Additionally, we're going to put in a GTC order to attempt to close out the put spread portion of the trade for about 90% of its possible profit.

Trade Details:

BTC -1 SPX Ju112 1385 call
STC 1 SPX Ju112 1395 call
BTO 1 SPX Ju112 1420 call
STO -1 SPX Ju112 1410 call
for a max net debit of $1.70 per contract (GTC, limit order)


STC 1 SPX Ju112 1175 put
BTC -1 SPX Ju112 1185 put
for a max net debit of $0.10 per contract. (GTC, limit order)

Max Risk: $950
Max Reward: $50 or 5% by Jul 20
Profit Range: between $1185 & $1410 by Jul 20
Suggested Downside Stop @ $1200
Suggested Upside Stop @ $1395

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