With only 7 trading days and 10 calendar days (including Presidents Day) to go until expiration day the underlying S&P 500 Index remains firmly above both the short 2460 strike price and purple defensive posture line.
In the wake of our last trade which expired at a full profit on Friday, today the ZEGA trading team was back to work looking for a new position that satisfied our stringent rules for entry. This time, we found a February 22nd expiration short put spread with expiration of 2460 and 2410 on the S&P 500 Index.
With expiration day upon us Friday February 1st, the Iron Condor position appears to be poised to realize a full profit. Since we sell premium and generate credits, a full profit is realized when they expire worthless.
Yesterday with the pullback in equity markets, we were able to find a short put spread HIPOS trade that qualified our entry rules. For some of you this might be a new wrinkle for HIPOS as this created an Iron Condor position.
Take a look at Jay’s bond market outlook in Lou Carlozo’s article, “How Bond Investors Can Cope With a Bear Threat” at U.S. News.