Thursday 14 December 2017

ODAX January 2018 Iron Condor Update: Closed Put Spread

Summary

After 15 days out of 52, without any movement in the DAX index and today´s significant drop in IV, I managed to close the Put leg of the Iron Condor for about 60% of the maximum profit.

DAX 30 on December 14th 2017. Source Investing

I am being quite conservative here, as the put leg was the more vulnerable in this trade, as in case of a drop I would not have any hedge to finance a possible adjustment (unlike the call leg with the February Bull Call Spread) while I still would incur in the loss of the hedging trade.

Trade status

TypeNameOpen DateDTEP/L
Put SpreadODAX Jan 2017 12300/1190028/11/20175289,50 €
Call SpreadODAX Jan 2017 13600/1400028/11/201752
Call SpreadODAX Feb 2018 13400/1345028/11/201780

You can see all the trade details here.

The plan now, is to keep holding the Call Spread until expiration and, in the case of a nice drop and IV increase, I might re-open the put spread at a lower strike.

See also

No comments:

Post a Comment