Iron Condor Traders Collect Max Profit in $AZO

An Iron Condor is an option strategy that takes advantage of the passage of time vs the stock sitting within a range.  So as long as the stock sits within the range the strategy will collect full profit.  In our Time Bandit Option Trading Service we analyze the market to find Iron Condor opportunities.

On last week’s expiration of March 16th, our service closed out Autozone($AZO) for full profit.

The analysis showed a nice consolidation pattern forming after a drop in the stock price due to earnings.  The sector had been somewhat stagnant as well.  The stock had the 50 and 100 day simple moving average above, but were not close enough to play any resistance roles for this spread.  The 200 day SMA did show us some potential as it was sitting around the $622.46, on the day of entry.  This, married with other support areas, gave us a confluence of support to anchor our lower short strike.

Further analysis showed decent premium vs implied volatility scenario( what the market was pricing!)

As you can see from the chart below, the stock sat in a pretty tight range(more than expected!)

Our subscribers were able to lock in max profit as the option spreads expired worthless!  They collected about $1.60 per spread or $160 for each 1 lot Iron Condor that was entered!