The July Bull Put 735/740 and Bear Call 860/870 Russell 2000 Iron Condor expires worthless and we experience max profit. I tempted death this month by not following the rules and not adjusting my position when the RUT reached 860. Luckily and I mean luckily the RUT settled at 826.81.
Sell Bull Put – 735/745 & Bear Call 910/920 for a net credit of 12.5%
Sell Bull Put – 720/730 for a net credit of 7.5%
Net Credit: $.86 per share or $86 per contract (each contract is 100 shares)
- $1000 margin requirement per contract
- $86 / $1000 = 8.6% return on investment
- Total potential loss of $914 ($1000-$86) per contract