RED Option Market Blog:A weblog of market news and options analysis. |
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posted by:Tom Preston on Jun 21, 2009, 10:38 pm |
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With SPX June settlement price 926.15, the experimental SPX June 815/820/1000/1005
iron condor expired worthless. We had simulated selling 5 of them in the experimental
account for 1.00 credit apiece the day after May expiration, so the profit was
$500. Commissions were $39.95. That trade pushed the value of the experimental
account to $10,230, which is over its starting value nearly 3 years ago of $10,000.
Total commissions paid have been $1,248 over the life of the experiment, which
has been a large, negative influence on performance. It’s been a struggle for
the iron condors to offset the commissions and the occasional large loss.
The experimental buy and hold 79 SPY shares have rebounded a bit this month.
The $.35 per share dividend received at this expiration added $28 to the experimental
account, which now stands at a value of $7,845. Last fall’s market crash wiped
out a lot of value that is still hurting that position.
We’ll find the next experimental SPX iron condor on Monday morning.
This discussion is for educational purposes only and is not intended as a trade
recommendation.
Tom Preston
thinkorswim, Inc.
Member FINRA/SIPC/NFA
thinkorswim, Inc. and its registered employee, Tom Preston, do not solicit or
recommend any form of trading in the individual stocks (or their derivatives)
mentioned above. Please do careful, independent research before investing any money as well as
weigh the possible consequences on your particular financial situation before
doing so. The risk of loss may be substantial.
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DISCLAIMER:
RED Option, in an attempt to provide the best resources from some of the industry's most capable people, will from time to time allow the author to include trade recommendations within this blog. RED Option does not endorse these trades nor does it have any input whatsoever into the decision making. Any trade recommendations are the sole opinion of the author.
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