closing long iron conder

Hi all,

if i were to buy a long iron condor today before closing lets say for PINS

all expiring 05/24, current stock price is 29.58$
sell 31 call
buy 30 call
buy 29.5 put
sell 28.5 put

can someone explain to me how would this spread react if it goes over 31 or under 28.5 tomorrow after earnings?
will i be able to sell it for profit right there a week before expiration?
i crunched the numbers in a profit calculator and it shows ill only see profits at expiration.

just want to make sure im not doing a mistake here
new to this

 

What price would you pay for the 4 legs.

 

Yeah, it's going to be skinny.
You're paying ~90¢ for it, at best, before commissions.
If it exceeds $31, or descends below $28.50, one or the other position has earned $1.00.
(And again, before commissions.)

You need to plot everything from $28.00 to $31.50, both puts, both calls, then the net, then net-net of commissions.

This will be easy to plot 'at expiration' -- one place to possibly retain value will be the Time value left in any OTMs that might encourage you to exit before it runs out completely.

If your (retained) Time Value>commissions, then harvest before expiration.

 

it will cost me 0.90$.
so from my understating my max profit is 0.1$ (X100), not an amazing risk/gain ratio. but i do have more than a week until expiration. since theres a good chance it will reach the outer strike prices, i dont mind taking that risk, as long as i can sell it in a day or two with a minimal loss.

 

Commissions will make it hard to make money on this type of spread consistently. You might this time, but if you do it ten times....

Also, you have another week to go after earnings. That means you likely can't exit at max profit tomorrow-even if you are correct.

 

i trade on robinhood for now with a small account for practice, so i dont take into account commissions for now.
see the picture attached, i put the strikes in optionsprofitcalculator.com and it shows that before expiration im in constant loss, even way beyond the low/high strike prices. is this correct?

 

i dont mind exiting tomorrow or Monday without the max profit, but will i be able to exit with some profit? cause with what i see on the calculator, i cant

 

Pick an opening price and what vol you expect May 24 Vol to be tomorrow morning, and I can sim the value.

 

Well, good that the commissions are free but you can sim anything. Here is an example of prices simulated with 5/17/2019, stock price 28, Vol .62. Spread worth 1, but I expect no one will buy it for that.

BTW, the is Silexx cost $200/month or $400/month, you will pay commissions, but you will have tools to trade. We only offer Silexx to PM accounts.

 

thanks for the help.. ill look into it
by the way pin is down 11% after hours for now so the plan could work lol