I entered a short Iron Condor position on SPY on December13, one day before expiration, and exited on expiration day for a 24.1% loss after the price of the underlying stock opened higher following the release, pre-opening, of several economic reports that usually don’t make a big splash.

The lesson of the loss may well be more cautious of 1DTE trades where there are pre-opening economic releases.

SPY short Iron Condor

LOT:	19	ENTRY DATE:	12/13/2023
		EXIT DATE:	12/14/2023
		DAYS HELD:	1

Entry and Exit

METRIC	CREDIT	DEBIT	CHANGE	CHANGE %	ANNUALIZED CHANGE %
Options premium	$ 1.95	$ 2.57	$ (0.62)	-24.1%	-8757%
METRIC	ENTRY	EXIT	CHANGE	CHANGE %	ANNUALIZED CHANGE %
Stock price	$ 470.23	$ 473.27	$ (3.04)	0.65%	236%
Impllied Volatility Rate	2.1	1.3	-0.8
Days to expiration	1	0

Position Structure

STRUCTURE	STRIKE	ODDS EXPIRE OTM	DELTA
Calls
Long	472.00	71.0%	31
Break-even	470.95	57.0%	45.5
Short	469.00	43.0%	60
Puts
Short	469.00	39.0%	69
Break-even	468.95	31.0%	74
Long	467.00	23.0%	79

Risk and Reward

Per contract:
Reward	195.00
Risk	55.00
R/R Ratio (n:1)	0.3

By Tim Bovee, Portland, Oregon, December 14, 2023

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

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Based on a work at www.timbovee.com.