OPENING: XBI MAY 17TH 80/85/98/103 IRON CONDOR

... for a 1.67/contract credit.

Metrics:

Max Profit: 1.67 ($167)
Max Loss/Buying Power Effect: 3.33 ($333)
Break Evens: 83.33/99.67
Delta: -2.03
Theta: 2.02

Notes: Some nondirectional premium selling here in an exchange-traded fund with high implied (24.8%) relative to the broad market; going 25 delta with the shorts, five-wide with the longs and collecting one-third the width of the wings. Will look to take profit at 50% max.

Transaction en cours:

Rolling the call side down to the 96/101 for a realized gain and .19/contract credit. It's not much, but it cuts net delta in half ... . Scratch at 1.86.

Transaction en cours:

With the call side approaching worthless and the short put side being tested on this down move, rolled the call side down to the 90/95 immediately at open for a .65/contract credit; scratch at 2.51.

Transaction en cours:

Rolling down to the 86/89 for a .53/contract credit with a resulting scratch point of 3.04/contract. Because the total credits collected exceed the width of the call side spread (and therefore its max loss), the setup no longer has upside risk and has a downside break even of 81.96..

Transaction en cours:

Covering here with 18 days to go for a 2.71/contract debit, a small winner of 3.04 - 2.71 or .33/contract.