Update 6/25/2019: XOP pushed to 51.4% of maximum potential profit, and I exited my short iron condor position for a debit of $0.17 per share. That produced a $0.18 per share profit on the options, with the stock priced at $26.00, or $0.96 above the entry point.
XOP during my holding period traced a sideways pattern a bit more than $2 wide. The implied volatility rank dropped by 8.3 to 35.6%.
Shares rose by 3.8% over 19 days, or a +74% annual rate. The options position produced a 105.9% return for a 2,034% annual rate.
I have entered a short iron condor spread on XOP, using options that trade for the last time 43 days hence, on July 19. The premium is a $0.35 credit and the stock at the time of entry was priced at $25.04
The profit zone for this position is between $29.35 on the upside and $20.35 on the downside.
The implied volatility rank (IVR) stands at 43.9%.
The premium is 17.5% of the width of the position’s wings.
The risk/reward ratio is 4.7:1.
By Tim Bovee, Portland, Oregon, June 6, 2019