Education
Option Traders Collect Max Premium in $BKNG
Option traders know that using varying option strategies is a must depending on the market action. Here in the Time Bandit Option Trading Service we focus on Iron Condors because we know that every investor should be using them to collect premium. Are there times to use them and times not to? Of course, but […]
Option traders know that using varying option strategies is a must depending on the market action. Here in the Time Bandit Option Trading Service we focus on Iron Condors because we know that every investor should be using them to collect premium. Are there times to use them and times not to? Of course, but that is why we vary sectors and positions based on market activity.
We used Booking(Priceline) ($BKNG) as an Iron Condor candidate in our May 10th webinar. With stock around $2,067.38 we chose the 1980-2140 Iron Condor to collect about $1.95 of premium. This option spread consisted of buying the 1970 puts and 2150 calls and selling the 1980 puts and 2140 calls.
As you can see below the stock had earnings on the 9th and we saw a good area on the 10th for the Iron Condor as implied volatilities were coming in. After the fall in the stock it sat idle for us for until expiration where subscribers were able to collect 100% of the premium of the Iron Condor or $1.95.
This means that for each spread they collected $195.
