Monday Special (19 April 2021)

We speculate that the S&P 500 (SPX) will trade between 4150 and 4185 through Monday's session. Our strategy here is selling one iron condor.

The strike breakdown:

sold 4185 call

bought 4190 call

sold 4150 put

bought 4145 put

Credit to open was $120

If you are not familiar with an iron condor, it is an options strategy where you set a floor and a ceiling to create a range the underlying (stock, ETF, index) will trade in. An iron condor consists of a call credit spread and a put credit spread within the same expiration. Since we are selling it we begin the trade with a credit and as long as the price stays between your short strikes, we keep the credit. This trade required $500 in collateral to place.