Iron Condor Option Traders Cash in $CMG

Serious option traders know they need to have a portion of their portfolios utilizing some type of premium collection strategies.  This portion may vary in size as volatility increases or decreases and/or as the opportunities arise.  In our Time Bandit Option Trading service we focus on Iron Condors that aim to collect premium in stocks that we think will sit within a range over a specific period of time.

In our past webinar on April 26th, we discussed movement in Chipotle($CMG).

Subscribers sold the 400-452.5 Iron Condor for about $1.50.

This means they bought the 390 puts and 462.5 calls as protection against selling the 400 puts and 452.5 calls for a total premium of around $1.50 for each option spread that was entered.

With earnings the day before we were able to play slightly against the reaction of the positive earnings.  This was not an earnings play.  We waited for the market to react and then we banked on the stock settling into a range and it barely moved giving us a nice easy week!

For each Iron Condor option spread that was entered, our subscribers, were able to collect about $1.50 per spread or $150.