November 2014 Nikkei 225 Iron Condor Adjustment#2

On Oct-29, 

1. I closed the Put Spread at 7 as it reach 50% target credit in just 3 days.  Took in profit of JPY 40,000 (15-7 * 5 * 1000)
2. I also close the Call Spread at 46 as its Delta hit 25.  Took in lost of JPY 150,000 (46-16 * 5 * 1000).
3. I sold 10 Call Spread at 13 at Delta 8.6.  Took in credit of JPY 130,000 (13 * 10 * 1000)
4. I also sold 5 Put Spread at 13 at Delta 8.7.  Took in credit of JPY 65,000 (13 * 5 * 1000)

I sold the 10 Call Spread as part of the adjustment I mentioned earlier.

I sold 5 Put Spread as part of the adjustment.  However, I didn't sell 10 Put Spread because

• I am worried there might be a retracement after today run
• I want to sell Put Spread on a down day
• I want to sell Put Spread when volatility goes up 

So, I leave another 5 contract Put Spread for another day.

The Iron Condor is now 14250/14500/16375/16625.

Credit received : JPY 195,000 (130,000 + 65,000)

Max risk: JPY 2,305,000 (10 * 250 * 1000 - 195,000)

Margin: JPY 1,000,000 (~ USD 10,000)

Days to expiration (DTE): 16

N225 Nov2014 Iron Condor Profit/Loss : JPY -80,000 (30,000 + 40,000 - 150,000)

Related Posts:

Oct-27: November 2014 Nikkei 225 Iron Condor Adjustment

Oct-16: November 2014 Nikkei 225 Iron Condor

November 2014 Nikkei 225 Iron Condor Adjustment

On Oct-27, I closed the Put Spread at 4.  Took in profit of 6 (JPY 30,000).  I immediately sold another Put Spread 14125/13875 at 15 (JPY 75,000).

Details:

N225 at 15348 (1223 points 7.96% downside)

Sell N225 October 14125 Put at 43 

Buy N225 October 13875 Put at 28 

Credit received : JPY 75,000

Days to expiration (DTE): 18

The reasons I close the Put Spread are:

1. It reached almost of project target of 70%.  Originally intention was to have IB auto close at 3 (1 point lower than the limit set as stated in this post).  Somehow, this round IB close at the limit set, 4.

2. At Delta 3 or 2, Spread value of 3 or 4, it no longer provide any protection for the Call Spread if N225 continues to go up.

3. To bring in more credit in anticipation of Call Spread adjustment.

I normally don't roll up when the DTE is less than 30.  However, the Dec Put Spread with Delta 9-10 was not attractive.

The Iron Condor is now 13875/14125/16000/16250.

Credit received : JPY 155,000 (75,000 + 80,000)

Max risk: JPY 1,0950,000

Margin: JPY 500,000

Days to expiration (DTE): 18

Related Posts:

OCt-16: November 2014 Nikkei 225 Iron Condor

November 2014 Nikkei 225 Iron Condor

On Oct-16, I sold an Nikkei 225 (N225) Iron Condor 13000/13250/16000/16250 when N225 was at 14739.

Details:

Buy N225 October 16250 Call at 18 

Sell N225 October 16000 Call at 34 

N225 at 14739 (~1261 points 8.56% upside; 1489 points 10.10% downside)

Sell N225 October 13250 Put at 65 

Buy N225 October 13000 Put at 55 

Credit received : JPY 130,000

Max risk: JPY 1,120,000

Margin: JPY 500,000

Days to expiration (DTE): 29