- Option Portfolio
- Market Close January 19, 2017
- How to Adjust a Losing Iron Condor?
- What Options do I have to Adjust?
- Robinhood Top 5 Option Trading Tips
- Iron Condor Pre-Earnings
- Long 5 $12.50 Call Options
- Trade Start: 25th October
- Long 5 $15 Put Options
- Trade Start: 24th October, 2016
- 2016 Closed Position Summary
- 2015 Closed Position Summary
Market Close January 19, 2017
P&L up $3
|GLW Short Iron Condor|
|GLW Feb17'17 $25 Call||-3||0.48||0.47||3|
|GLW Feb17'17 $26 Call||3||0.2||0.16||-12|
|GLW Feb17'17 $23 Put||-3||0.23||0.26||-9|
|GLW Feb17'17 $22 Put||3||0.13||0.2||21|
How to Adjust a Losing Iron Condor?
January 25th, 2017
Looks like my pre-earnings Iron Condor strategy was indeed a bad idea.
GLW released their earnings before the market opened Tuesday 24th January to the surprise of analysts.
Core EPS turned out to be $0.50 on a predicted $0.44.
The stock opened strong and rallied higher throughout the day to close the session up 5.7% to $26.18.
The stock is now outside the upper breakeven point of $25.38 and if it continues I will realise my max loss of $186 ($62 per contract).
What Options do I have to Adjust?
I have a few alternatives to consider as to how to manage this trade at this point:
- Do nothing and hope that the market pulls back from now until expiration
- Sell a higher strike put spread
- Sell a higher strike put spread in the next expiration
- Reverse the existing short call spread into a long call spread
- Close the short call and leave the long call to run
- Double down with another Iron Condor
In considering the above, I looked at the option prices at the close for the Feb 17th options:
Since the pop in stock price due to earnings, the uncertainty has since been remove and can be seen in much lower option prices.
Implied volatility has dropped to 18% so 2, 3 and 6 don’t look like bringing in much premium.
Robinhood Top 5 Option Trading Tips
Plus, putting on another Iron Condor in March would mean having to put it with narrow strikes in order to make it worthwhile but also means a lower chance of the stock staying between the bands.
Also to consider is the sentiment since the report, which was very favorable for the future outlook of the stock.
I would say that I am now bullish on the stock.
Pre-market activity also shows a strong open with the stock having traded $26.30 with an hour before the open.
So what I’m going to do is go with #5 above; close out the short $25 call and leave the $26 long call open. The $25 calls closed at $1.32 but with the pre-market looking to open higher, I’m not sure what price to go with. Perhaps yesterday’s offer price of $1.35?
Iron Condor Pre-Earnings
January 19th, 2017
It's not always a good idea to take on short volatility strategies pre-earnings, but take a look at this Iron Condor setup for GLW.
The stock has earnings out January 24th and the options expire February 17th.
The implied volatility suggests there is some uncertainty leading into the announcement; IV is relatively high at 25% compared to historical vol of 15%.
Max profit on this is $38 per contract, which is the net credit received at the time of trade. Max loss is $62. At the current volatility level, there is a 69.27% chance of success with this trade.
Long 5 $12.50 Call Options
Trade Start: 25th October
Option Scans for 24th October
Option Prices for 24th October
Long 5 $15 Put Options
Trade Start: 24th October, 2016
Only 0.55 for these puts when they are 3 months out.
The chart doesn't make it look like a good trade but there's plenty of time in this one. Earnings are out October 28th.
Option Scans for 21st October
Option Prices for 21st October
2016 Closed Position Summary
|COH Iron Condor||25-Jan-16||5-Feb-16||11||31.4||31.4|
|COH Adj Call Spread||3-Feb-16||5-Feb-16||2||55.5||86.9|
|CAT Short Call Spread||28-Jan-16||12-Feb-16||15||-22.5||64.4|
|FCX Iron Butterfly||28-Jan-16||18-Feb-16||21||35||174|
|FSLR Iron Condor||23-Feb-16||26-Feb-16||3||-26.2||147.8|
|TGT Short Call Spread||23-Feb-16||26-Feb-16||3||-66.6||81.2|
|EPD Put Bear Spread||29-Feb-16||18-Mar-16||18||-40||41.2|
|SPY Iron Condor||2-Mar-16||4-Mar-16||2||-22||19.2|
|RCL Put Spread||24-Mar-16||15-Apr-16||22||-143.5||-124.3|
|RIG Put Spread||30-Mar-16||15-Apr-16||16||-56.7||-231.6|
|VZ Long Call||30-Mar-16||15-Apr-16||16||-101.6||-333.2|
|JWN Long Put||30-Mar-16||15-Apr-16||16||364.2||31|
|EMC Long Put||13-Apr-16||20-May-16||37||-160||92.8|
|ETE Long Call||19-Apr-16||20-May-16||31||168||260.8|
|MRO Long Call||19-Apr-16||20-May-16||31||-75||185.8|
|KEY Long Call||20-Apr-16||20-May-16||30||6||191.8|
|MS Long Put||20-Apr-16||20-May-16||30||-100||91.8|
|VALE Long Put||21-Apr-16||20-May-16||29||360||451.8|
|JNPR Long Put||21-Apr-16||20-May-16||29||-62||389.8|
|KMI Long Call||28-Apr-16||20-May-16||22||-100||289.8|
|IPHI Long Call||29-Apr-16||20-May-16||21||-55||234.8|
|NG Long Call||29-Apr-16||20-May-16||21||-80||154.8|
|MRO Short Call||29-Apr-16||20-May-16||21||55||209.8|
|CTL Long Put||2-May-16||20-May-16||18||212||421.8|
|HIMX Long Call||9-May-16||13-May-16||4||-55||366.8|
|ETE Short Call||10-May-16||20-May-16||10||55||421.8|
|VIAV Long Call||24-May-16||17-Jun-16||24||-100||321.8|
|CYH Long Strangle||25-May-16||17-Jun-16||23||-110||211.8|
|HBI Long Strangle||31-May-16||17-Jun-16||17||-115||96.8|
|ANF Long Put||31-May-16||17-Jun-16||17||-90||6.8|
|RF Long Call||1-Jun-16||17-Jun-16||16||-80||-73.2|
|WLL Long Put||8-Jun-16||24-Jun-16||16||300||226.8|
|ANF Covered Put||17-Jun-16||24-Jun-16||7||60||286.8|
|ATVI Put Spread||2-Jun-16||15-Jul-16||43||-126||160.8|
|CY Long Call||2-Jun-16||15-Jul-16||43||-42||118.8|
|GOGO Long Put||6-Jun-16||15-Jul-16||39||-124||-5.2|
|VLO Long Put||6-Jun-16||15-Jul-16||39||-100||-105.2|
|RBS Long Call||8-Jun-16||15-Jul-16||37||-120||-225.2|
|PBI Long Call||9-Jun-16||15-Jul-16||36||-100||-325.2|
|GGAL Long Call||9-Jun-16||15-Jul-16||36||60||-265.2|
|MT Long Call||9-Jun-16||15-Jul-16||36||-110||-375.2|
|PLD Long Call||9-Jun-16||15-Jul-16||36||90||-285.2|
|VIAV Covered Call||22-Jun-16||22-Jul-16||30||258||-27.2|
|BID Long Call||11-Jul-16||9-Aug-16||29||1950||1922.8|
|NLY Long Put||8-Jul-16||19-Aug-16||42||-90||1832.8|
|LGF Long Put||8-Jul-16||19-Aug-16||42||-145||1687.8|
|CMCSA Long Call||11-Jul-16||19-Aug-16||39||-100||1587.8|
|D Long Put||26-Jul-16||19-Aug-16||24||-135||1452.8|
|PEG Long Put||27-Jul-16||19-Aug-16||23||140||1592.8|
|KR Long Call||27-Jul-16||19-Aug-16||23||-150||1442.8|
|DB Long Put||11-Aug-16||16-Sep-16||36||-150||1292.8|
|LOW Long Put||11-Aug-16||16-Sep-16||36||1050||2342.8|
|FIT Long Call||11-Aug-16||16-Sep-16||36||-126||2216.8|
|GT Long Call||18-Aug-16||16-Sep-16||29||450||2666.8|
|NUAN Long Put||18-Aug-16||16-Sep-16||29||-140||2526.8|
|GFI Long Call||13-Sep-16||21-Oct-16||38||-170||2356.8|
|EGO Long Call||14-Sep-16||21-Oct-16||37||-200||2156.8|
|CCL Long Put||19-Sep-16||21-Oct-16||32||-120||2036.8|
|BAC Long Butterfly||27-Sep-16||21-Oct-16||24||105||2022.8|
|DDD Long Put||20-Sep-16||27-Oct-16||37||-49||1987.8|
|JCP Long Call Spread||23-Sep-16||27-Oct-16||34||-47||1940.8|
|CNP Long Call||26-Sep-16||27-Oct-16||31||-150||1790.8|