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HD and TLT Iron Condor Updates

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October 14, 2019 0 comments

As part of Iron Condor month, back on September 12th, we looked at two Iron Condor examples – HD and TLT.

You can read the initial article here, but the basic premise was that both HD and TLT had experienced a strong run up and were likely to consolidate sideways through time rather than correcting.

At the time HD was trading at $233.80 and TLT was trading at $139.55.

Here were the trade setups:

HD Trade Set Up:

Sell 5 HD Nov 15th, 215 puts @ $1.87
Buy 5 HD Nov 15th, 205 puts @ $0.97
Sell 5 HD Nov 15th, 255 calls @ $0.97
Buy 5 HD Nov 15th, 265 calls @ $0.27

Premium: $800 Net Credit

TLT Trade Set Up:

Buy 10 TLT Nov 15th, 127 puts @ $0.24
Sell 10 TLT Nov 15th, 132 puts @ $0.69
Sell 10 TLT Nov 15th, 147 calls @ $0.79
Buy 10 TLT Nov 15th, 152 calls @ $0.29

Premium: $950 Net Credit

As of Friday’s close, TLT was trading at $140.44 and HD was trading at $234.66. For both the stock and the ETF, that’s basically right where they started a month ago, perfect for an Iron Condor!

So, let check in and see how the trades are doing.

HD is currently +$415 so has reached the profit target and can be closed (I actually closed this a bit earlier than planned at +$200).

TLT is +$450 and is also right near the profit target so can be closed.

If you have any questions about these trades, feel free to shoot me an email.

Trade safe!

Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.

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Options Trading 101 - The Ultimate Beginners Guide To Options

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