Short Iron Condor (FSLR)    Comments?

Closed. Total Loss: -$26.20 Length: 3 Days.

Start: February 23rd

First Solar are releasing earnings after market close today. Recent price action over the past two months has been choppy and heading into a range bound pattern.

Implied volatility for this week's expiry (Feb 26) is very high at 107%.

My bet is that the stock, even after earnings are released, will remain fairly range bound and I have executed a short Iron Condor using the $67.50/$68 call options and $60.50/$60 put options.

This is a credit spread done at $28 per contract and I did it for a huge 2 lots!

Max profit if the stock stays inside $67.855 and $60.145 will be $57 and max loss if outside this range will be $43.

Here is the payoff profile graph:

Here are the order details and options screen:

Update 24th February

Even though my order was for 2 lots I was only filled for 1, so my max loss can now only be $26 and max profit of $24.

Update 26th February

Check out the rally after FSLR reported stronger than expected earnings:

The above chart was taken after Friday's close, which was well above our upper break levels. This means I've reached the max loss on the trade of $26.20.

Here are the closing values:

SymbolPositionPriceCloseP&L
FSLR Iron Condor        
FSLR Feb26 $67.50 Call -1 1.01 2.75 -174
FSLR Feb26 $68.00 Call 1 0.921 2.25 132.9
FSLR Feb26 $60.00 Put 1 1.861 0 -186.1
FSLR Feb26 $60.50 Put -1 2.01 0 201
Total   -0.238 -0.5 -26.2

 

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