Iron Condor Traders Cash in $GOOGL May 18th

The overall market had a great run with several up days in a row and usually when this happens… Iron Condor short strikes get tested.  In our Time Bandit Option Service we did not get tested on the upside, which we would have expected, but we did watch cautiously as Google ($GOOGL) dropped to within $4 above our short put strike after the bull run was over.

On May 10th we discussed the 1060-1140 Iron Condor for our subscribers in our weekly webinar.  This meant that we bought the 1050 puts and 1150 calls and sold the 160 puts and 1140 calls.  Subscribers reported the entry price was about $1.60 per option spread.

We wanted to be careful because the previous week, the stock broke above $1,060 and did not look back!  We researched this trade with a mid market of about $1,103 with the straddle or expected range to be about $28.  We were able to sell about $40 to both the upper and lower short strikes in the Iron Condor.  This was $12 wider than the expected move.

Some subscribers took off the trade early in the week as the spread had reduced in price to about $0.45.

In the end, neither strike was tested and subscribers could have locked in a max profit of about $1.60 per Iron Condor or $160 of premium.