Max Option Premium Collected in $CMG

Collecting premium in option trading is almost as critical as picking the right stock at the right time.  If you only buy options they will decay over time. If you add some type of option selling component like the Iron Condors option strategy it will help to offset that decay.  In our Time Bandit Options Trading Service we use Iron Condors to collect premium in stocks that we feel will stay within a range for a specific period of time.  This past week we analyzed Chipotle ($CMG) for a potential Iron Condor.

We analyzed the June 22nd Expiration 440-472.5 Iron Condor which collected about $1.85 of premium (credit).

Our Time Bandit Option trading subscribers bought the 430 put and 482.5 call as protective options and sold the 440 put and 472.5 call as the premium options for a total credit of $1.85.  Each iron condor option spread brought in $185 when you account for each option controlling 100 shares of stock.

This stock had a little bit of a test where the stock went above our short strike but settled below the short call strike.  This allowed us to collect maxium premium or 100% of the $1.85.

For each Iron Condor option spread that our subscribers put on they collected the full $185 or 100% of the credit.

For more information on using Iron Condors in your Portfolio you can check out our Time Bandit Service!