SLV Iron Condor with a Long

Discussion in 'Options' started by Ross3384, May 9, 2011.

  1. Ross3384


    This is my first post so bear with me on the terminology. I have been trading options for some time..

    Today I entered into an SLV options position that seems to have some merit. With SLV close to 36, I entered into an at the money iron condor with the 5/21 expiration selling the 36 put and call and buying a 33 put and a 39 call for a credit of $2.10. At the same time I purchased a equal number of 6/18 expiration 37 call and 35 put strangles for $4.44. (1 strangle for each iron condor)

    The trading plan is to enter into 4 weekly iron condor positions (Closing and reselling on Thursdays) until the June 18 expiration of the long strangle or if a $100 profit per position is achieved.

    I plan to hold the long strangles and do any position adjustments on the ICs.

    I am not sure quite how to do adjustments, for example, if on 5/20 SLV is 38, when I sell the next weeks ICs, should I just sell another 36 IC with 39 and 33 wings and hope the trend continues?

    The positions would seem to have a low risk, and would be profitable either with the IC decay or a $4 or $5 dollar move.

    Any Comments. Thanks.