free option strategy

Long Iron Condor – Free Trade Idea

Every Friday we give you a free options trade idea identified by Option Party. Today, we’re focusing on the long iron condor screener.

OPPORTUNITY

There is an attractive long iron condor trade in Tesla (TSLA). It is currently trading at $376.78.

CHARACTERISTICS

There is a 88.2% chance the stock will close between 327.50 and 412.50 on 09-29-2017, and you will earn your target return of $337.05. There is a 88.9% chance the stock will close between 326.83 and 413.17 on 09-29-2017, and you will earn a profit. There is a 2.7% chance the stock will close either below 310.00 or above 430.00 on 09-29-2017, and you will have a total loss of $8,412.95.

ENTRY PLAN

This is a four legged strategy. To enter this position you will buy 5 put options with a 310.00 strike price, sell 5 put options with a 327.50 strike price, sell 5 call options with a 412.50 strike price, and buy 5 call options with a 430.00 strike price. All options will have an expiration date of 09-29-2017. This trade will produce a net credit of $0.71. The commission for this trade will be $17.95.

DISCLAIMER

All information presented here is current as of September 15, 2017 11:19 am (EST). All trading involves risk. Free trades ideas are presented for illustrative purposes only and are not to be construed as financial advice.


How Did We Do? The Results…

This trade employed a Long Iron Condor strategy that needed TSLA to close between $237.50 and $412.50 on September 29, 2017 to earn the targeted return. TSLA closed at $341.00 which resulted in a return of $337.05.