Materials Select Sector SPDR Fund (XLB)
I have entered a short iron condor spread on XLB, using options that trade for the last time 49 days hence, on June 21. The premium is a $0.48 credit and the stock at the time of entry was priced at $56.47.
The profit zone for this position is between $59.48 on the upside and $49.48 on the downside.
The implied volatility rank (IVR) stands at 27.
| Premium: | $0.48 | Expire OTM | |
| XLB-iron condor | Strike | Odds | Delta |
| Long | 61.00 | 96.0% | 5 |
| Break-even | 59.48 | 89.0% | 12.5 |
| Short | 59.00 | 82.0% | 20 |
| Puts | |||
| Short | 53.00 | 80.0% | 18 |
| Break-even | 49.48 | 86.0% | 12.5 |
| Long | 49.00 | 92.0% | 7 |
The premium is 16% of the width of the position’s wings.
The risk/reward ratio is 5.3:1.
By Tim Bovee, Portland, Oregon, May 3, 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.
[…] My six positions are 42 days away from expiration. They all remain within their profit zones and have required no action this week. The positions are CGC, IYR, UNH, XBI, XLB and XOP. […]
LikeLike
[…] Despite the Sturm und Drang of the markets as the U.S.-China tariff war heats up, my six positions remain within their profit ranges. The options positions are all short iron condors with the short calls and puts set as close to a 20 delta at entry as the grid would allow. The stock symbols corresponding to my options positions, with links to the analyses, are CGC, IYR, UNH, XBI, XLB and XOP. […]
LikeLike
[…] holdings, also short iron condors, remain within their profit zones. The are CGC, UNH, XBI, XLB and XOP. All of my positions are scheduled for exits by May […]
LikeLike
[…] My other positions, also short iron condors, remain in the profit zone but have yet to approach the 50% of max mark. They are UNH, XBI, XLB and XOP. […]
LikeLike
[…] $0.19. The bid/ask midpoint is now running at $0.14. My remaining positions — UNH, XBI, XLB and XOP — remain within the call and put short strikes. All five positions are short iron […]
LikeLike