Isnt your max risk $255...1500-1245 ? The condor you have on is essentially 5 five point flys for .85 or .17 per fly.. Its a cheap shot..
You do realize that your entire structure is short vega right? Even at 100% I.V if that POS ($BYND) turns and starts to fall not only are your short 190's in trouble but your entire structure is gonna shift down...possibly by a lot, which further means your margin req is gonna skyrocket. Hope you make money, I also hope you have a very big acct. That's how people go debit to their brokers. You are on dancing on a razor's edge man. G/L
OK, please use the per contract value next time. It's trading at a 3.9 credit at the close. It's risking 1.1 per contract. At 4:1 it's a solid play, but what are the odds of this thing closing outside those wings? Would you short a digital with barriers at 185 and 215 for 30/100? I probably would not. As it goes... it's the best condor available out to AUG2.
Just because the weekly vol is 100% doesn't mean much. Is that expensive, or cheap? When it comes to underlyings that are newly IPO'ed I stay away until a good amount of data is collected to calculate the moneyness of the options premium. Just my 2-cents Cheerz
Not following you..He took in 4.15 on a 5 point IC..Hes got .85 in risk ... how could his margin reg skyrocket?? thanks in advance
Here is your problem - you sold premium hoping the stock price will not change much - BUT it is almost impossible to get short so it just keeps going up. You think your loss is limited to $320 but you have short positions which can go as far as the want. I just checked your positions at up $12 today it looks like you are $200 ahead. Personally, I have stopped doing Iron Conders - too many legs and too much potential to go short. I am only buying puts & calls now - and I called both Tesla and Google earnings correctly - made $6000 the last few days with a $1000 risked cost basis. I would not sell calls in this stock right now - you could get assigned easily. Also - you do not do selling premium strategies during binary events like earnings. iron Condors are generally to be used on stocks that trade in a very small range. On earnings this stock could easily be up or down 100 points. Ask yourself where those shorts will be if that happens. Me? I am just buying puts before earnings - and probably some way OTM calls.
His losses are capped. He's short calls & puts but also long calls & puts to limit the loss. His credit per condor is $415 so each condor has a risk of $85. $85x3=$255 plus commissions = max. loss
Exactly...Somr of you are over complicating this..He took a cheap shot. Only problem I see is the spreads are really wide. Can the stock be borrowed? Doubt the 210's get assigned,but it's always good to know .
With such high IV this IC is likely to fail I'd say and the stock will move big. ICs are yesterday's trade IMHO. Your strikes were 5% OTM- but now the stock is $234 having moved....5% in one day. For the avoidance of doubt this is an iron condor, not a condor (which consists of only puts or only calls).