Exit 4/3/2019: I exited CELG on May 3 at 50% of maximum potential profit, for a $0.59 debit.
Shares rose by 4.6% over eight days, or a 210% annual rate. The options position produced a 101.7% yield for a +4,640% annual rate
I entered a short iron condor spread on CELG on March 26, using options that trade for the last time 52 days hence, on May 17. The premium is a $1.19 credit and the stock at the time of entry was priced at $89.34
The implied volatility rank (IVR) stands at 62%.
| Premium: | $1.19 | Expire OTM | |
| CELG-iron condor | Strike | Odds | Delta |
| Long | 105.00 | 97.0% | 4 |
| Break-even | 98.69 | 89.5% | 12 |
| Short | 97.50 | 82.0% | 20 |
| Puts | |||
| Short | 75.00 | 81.0% | 15 |
| Break-even | 71.19 | 85.0% | 11.5 |
| Long | 70.00 | 89.0% | 8 |
The premium is 19% of the width of the position’s wings.
The risk/reward ratio is 4.3:1.
By Tim Bovee, Portland, Oregon, April 1, 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.
License
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.
