Make 22 Percent in 30 days on this Iron Condor Trade

Usually when I do videos, I show you the trades I already have on.  In this video, I show you the trade setup that I just put on.  This trade is an options trade called an Iron Condor.  This Iron Condor trade has the potential to make you 22 percent on your money in the next 31 days from today.

I show you exactly what I was thinking when I put on the trade.  The trade limits to where I would lose money, and the potential profits I plan on taking before the trade comes to an end in 30 days.  I do not plan to take this trade to expiration.  I need to manage it by taking 50 percent of the profits before or just exiting the trade once the DTE reaches 20 days.  At least that’s my plan.  I say that because I usually reevaluate the trade once it reaches those limits.  Reevaluating is something I should not do.  Once a trade reaches my limits, I need to exit the trade.  It’s something I know I need to work on.

When I put the trade on, It had a 90% probability of success.  In actuality, since I sold both sides of the trade; it had more like an 80 percent chance of success, but I do not like those numbers and that math.  I say that because I can only lose on one side.  It’s a guarantee that one side of the trade will finish to be a winning trade.

This trade is in the SPX, which is the index for the S&P 500.  The optimal movement I need this stock to do for the next 15 days or so is to go sideways.   Although this trade is basically non directional, meaning that it can go sideways, up or down; sideways movement will lead to the fastest theta decay for the options.  The word theta comes from the option greeks.  It basically stands for the amount the the options contract will lose in value each day before options expiration.

Let me know if this video helped you learning about Iron Condors and if you have any questions, please don’t be afraid to comment.