Stock / Symbol: S&P500 Index / SPX
Option Strategy: [private_monthly]bear call spread to iron condor[/private_monthly]
Trade entry date / price: May 14 / $1647
Price at this adjustment: $1645
Current Position: [private_monthly]
short -2 SPX Jun13 1735 calls
long 2 SPX Jun13 1745 calls
at an effective debit of -0.02 per contract.
Reasoning: Looking to add a bull put spread to position to convert to an iron condor. This addition will put the profit potential back in this trade after having to roll up the call spread. The revised greeks will be: -4.1 delta to -2, 7.3 theta to 11.1, and -34 vega to -49. Setting a downside stop at 1580.
STO -2 SPX Jun13 1530 puts
BTO 2 SPX Jun13 1520 puts
for a min net credit of $0.45 per contract (GTC order, limit order). The mid is currently at $0.45.
Max Risk: $1,912 (revised down, includes loss from prior adjustment)
Max Reward: $88 or 4.6% between [private_monthly]1530 - 1735[/private_monthly] by Jun 21
Suggested Upside Stop @ $1691
Suggested Downside Stop @ $1580