TRADE IDEA: EA APRIL 18TH 90/95/120/125 IRON CONDOR
METRICS:
Max Profit: $175/contract* ($87 at 50% max; 38.7% return on capital)
Max Loss/Buying Power Effect: $225/contract
Break Evens: 93.25/121.75
Delta: .26
Theta: 121.75
Notes: Another scrounge-around trade in an underlying with fairly high rank/high implied (51/45) post-earnings.
Obvious Alternative Setups:
April 18th 95/120 short strangle, 5.11 at the mid, break evens at 89.89/125.11, delta -5.21, theta 9.11.
* -- Markets are showing wide here -- 1.17/1.75/2.32, so this may prove to be unsexy at NY open. I wouldn't settle for a fill that is less than one-third the width of the wings (1.67).
Max Profit: $175/contract* ($87 at 50% max; 38.7% return on capital)
Max Loss/Buying Power Effect: $225/contract
Break Evens: 93.25/121.75
Delta: .26
Theta: 121.75
Notes: Another scrounge-around trade in an underlying with fairly high rank/high implied (51/45) post-earnings.
Obvious Alternative Setups:
April 18th 95/120 short strangle, 5.11 at the mid, break evens at 89.89/125.11, delta -5.21, theta 9.11.
* -- Markets are showing wide here -- 1.17/1.75/2.32, so this may prove to be unsexy at NY open. I wouldn't settle for a fill that is less than one-third the width of the wings (1.67).
Commento:
Markets continue to be very wide here ... .
