Cannot publish with graphics
Here’s the next trade so you can be sure it is real and not some cherry picked claim to a trade as some sites may do.
Trade 102- Let The Market Decide
Sometimes we like to leg in, when we don’t know where we are at. I might think this is the bottom of the dip and 7000 is support. Part of me thinks there is another leg down and that level would be….6700-6800. So, what about the upside? 7300-7350 – ish. I’m making a guess based on recent price- and by recent I mean this year. I note that to date FTSE is down this month 6.13%. Here’s the plan-it’s a short iron condor. The conventional wisdom says to sell spreads, we will buy them, and the strikes for Nov: buy 6850 put at 50, sell 6800 put for 41, buy the 7250 call for 23.5 and sell the 7300 call for 15.5. So, here’s the math’ 50-41= 9, 23.5-15.5= 8.Total cost, therefore 9+8= 17.
Logic of The Trade
We are in for a cost of 17, we need to recoup this whenthe market lets us. Right now there is nothing to the upside-it would be folly to sell another 7300call for 15.5. On the downside? We could sell a 6600 put for 20. We now have risk at 6550, but a tiny credit of 3 for the trade. Greedy me wants to wait for a bigger move, and leg in.
