NQ Iron Albatross

#1

Sell 07/26/17 10:05:25 1 US Tech 100 (Sep) 5955.0-5985.0 (4:15PM) @ 5961.7 $-233.00 Buy 07/26/17 10:05:33 1 US Tech 100 (Sep) 5910.0-5940.0 (4:15PM) @ 5934.9 $-249.00 Sell 07/26/17 10:28:55 1 US Tech 100 (Sep) >5928 (4:15PM) @ 80.25 $-19.75 Buy 07/26/17 10:29:58 1 US Tech 100 (Sep) >5964 (4:15PM) @ 20 $-20.00 Settlement Payout 07/26/17 16:18:52 1 SHORT US Tech 100 (Sep) 5955.0-5985.0 (4:15PM) @ 5961.7 $300.00 Settlement Payout 07/26/17 16:18:52 1 LONG US Tech 100 (Sep) 5910.0-5940.0 (4:15PM) @ 5934.9 $300.00

The OTM bins were used as a hedge. They both expired OTM

#2

Thank you so much for posting this, I have been sooooo frustrated with with spreads until I just spent 30 mins reading and reviewing your post (and a few weeks demo trading) then somehow the lightbulb went off. I get it. :smile:

#3

Thanks, you can use the Iron condor vs Straddle calculator to where to place the bin hedges. If, you decide to have that

#4

This is excellent Sharpie! Thanks for sharing!

#5

This is great Sharpie!

For those of you who don’t have the time to do the math, here is the breakdown on the transactions:

-$233 for the sold spread -$1.00 fee -$249 for the bought spread -1.00 fee = $484 margin to enter the spreads -$19.75 on the sold binary hedge -1.00 fee -$20.00 on the bought binary hedge -1.00 fee = $41.75 in margin for binary hedges = total margin to enter this trade $484 + $41.75 = -$525.75

Sold spread collected premium and settled in the money for full payout of $300 -$1.00 settlement fee =$299

Bought spread settled in the money for full payout of $300 -$1.00 settlement fee = $299

Binary hedges expired out of the money so no return on the risk put up for those.

So $598 payout minus -$525.75 in margin = Net profit of $72.25

On a single contract.

Bravo!

#6

Thanks to every one.

#7

I really like this trade. Good job. :+1: Do you do this on a daily basis or when do you place your trades? If im correct your basically betting for the market to stay in between the two spread difference (5940 - 5955) or close to one of your binary hedge ITM (5928 or 5964) to make profit. In this day it did but i calculated the max risk if the trade went against you and it was around $100 which is not bad compared with the profit you can make.

#8

These are dailies,The best market is NQ and the best time is the summer. early in the day Look for spreads with a high positive premium. . The OTM bins are optional. Link to the ones i tried last summer. Iron albatross thanks