Live: Tuesday, April 2, 2019

10:50 a.m. New York time

XRT moved to 45.5% of maximum potential profit ($0.30 debit to exit the iron condor). Nonetheless, I have entered an exit order, at $0.27, which is 51% of max.

I said yesterday that I would be looking at EA today. It’s not a bad trade, but the reduction in my account’s buying power is greater than I like, so I shall pass for now.

Here’s the analysis:

EA has an implied volatility rank of 48%, with shares at $101.89.

Premium: $1.32 Expire OTM
EA-iron condor Strike Odds Delta
Long 130.00 96.0% 5
Break-even 121.32 92.0% 9.5
Short 120.00 88.0% 14
Puts
Short 85.00 86.0% 11
Break-even 76.32 90.5% 7
Long 75.00 95.0% 3

The proposed position covers 13.2% of premium with a risk/reward ratio of $868/$132, or 6.6:1.

4:30 p.m. New York time

The closing bell came with no fill on my XRT exit order.

By Tim Bovee, Portland, Oregon, April 2, 2019

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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