IYR Analysis

iShares U.S. Real Estate ETF (IYR)

I have entered a short iron condor spread on IYR, using options that trade for the last time 44 days hence, on August 16. The premium is a $0.43 credit and the stock at the time of entry was priced at $90.03.

The profit zone for this position is between $94.43 on the upside and $85.43 on the downside.

The implied volatility rank (IVR) stands at 28.4.

In constructing the position, I introduced a skew, increasing the profit zone on the upside and decreasing it on the downside.

Premium: $0.43 Expire OTM
IYR-iron condor Strike Odds Delta
Long 97.00 94.0% 5
Break-even 94.43 90.0% 9.5
Short 94.00 86.0% 14
Puts
Short 87.00 76.0% 24
Break-even 85.43 81.0% 19.5
Long 85.00 86.0% 15

The premium is 17.2% of the width of the position’s wings.

The risk/reward ratio is 4.8:1.

By Tim Bovee, Portland, Oregon, July 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
Creative Commons 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.

2 thoughts on “IYR Analysis

Comments are closed.