On april 21st i have decided to play a iron condor option on IBM. I have observed few things. IBM is trading at 100. 10 IBM May options 90/95/105/110 iron condor with a premium intake of 2400 and a risk of loss of 2600 if IBM is above 110 or below 90. So far IBM never breached these levels. looks like a decent trade with minimum risk.
Only one factor creating itch in my back is the trending market. Since March markets entered into a Bull market. No one is able to believe in this market. But market is rallying. Market has moved from the bottoms of 6500 to 8500 today.
Some observations on the trade. This trade is a 5 point Bear call spread and 5 point Bull put spread. This has a width of 10 point range. Implied volatility fell down and benefited the trade.
Now i am on to next trade.
Bye for now
Chandra Khandrika
Option Trader.
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