In the Time Bandit Option Trading Service that focuses on Iron Condors we discussed the stock Netease, ($NTES).
The Iron Condor Option Strategy realizes full profit when the stock closes in between the two short strikes at expiration.
Netease. (NTES) sell the Dec 22nd, 2017 Expiration (22DEC17) Expiration 325-375 Iron Condor for about $1.95 with stock around $357.38
Buy 315 Put
Sell 325 Put
Sell 375 Call
Buy 385 Call
This was our only stock that actually tested the higher short strike this past week. In the chart below you can see the area highlighted in red where is was breaking above our short strike. In order to collect a decent premium on this one the strikes are a little closer than we liked but we married them with key price levels. The stock tested our short strike which was very close to the stock’s all time high of $375. The stock rallied through quickly and proceeded to immediately sell off to below our short strike on Dec 21st. On Dec. 22nd, the stock opened at the short strike but then sold off for the rest of the day to close just above $365.38, but well within our full profit zone!