Today I was filled on the Call side of my March 2006 RUT Iron Condor.

• Mar 2006 RUT 780/790 Call Spread; completing an Iron Condor
• Sold 780 Call & Bought 790 Call

• Opened: Sold on 2/23/2006 for $0.15 Credit

• Reason: This completes a 660/670 780/790 Iron Condor. Using a three month window, the strike prices of 670 and 780 are more than two standards of deviation out so I’m feeling pretty confident with this one.
• The Russell is at 738 today and looks like it is still in the choppy pattern.
• Notes: The money is only on the table for 21 days, so this one should be nice. ROI will be about 5.5% , risk is $1000 per contract.

• Risk: As stated in the initial trade, the risk is about 3.7% on the bottom and 5.7% on the top, that is a total of about 9.4%, meaning that I have > 90% chance of profitability.

Categories: Options Trading