XOP Analysis

SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

I have entered a short iron condor spread on XOP, using options that trade for the last time 44 days hence, on October 18. The premium is a $0.44 credit and the stock at the time of entry was priced at $21.75.

The profit zone for this position is between $24.44 on the upside and $17.44 on the downside.

The implied volatility rank (IVR) stands at 40.6%.

Premium: $0.44 Expire OTM
XOP-iron condor Strike Odds Delta
Long 26.00 95.0% 6
Break-even 24.44 88.0% 14
Short 24.00 81.0% 22
Short 19.00 80.0% 16
Break-even 17.44 86.5% 11
Long 17.00 93.0% 6

The premium is 22.0% of the width of the position’s wings.

The profit zone covers a 12.4% move to the upside and a 24.7% move to the downside of the entry price, for total coverage of 37.1%

The risk/reward ratio is 3.5:1, with maximum risk of $156 and maximum reward of $44 per contract.

By Tim Bovee, Portland, Oregon, September 4, 2019


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.

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.

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