Hunting an Iron Condor Options Trade for February

About midway through yesterday's trading day, I placed an order for the 1,370-1,380 bull put vertical credit spread. My limit order was placed at, or slightly above, the mark price in expectation that we might see some additional selling toward day's end. That selling did not materialize and the order was not filled.

With the market again soft today, I have renewed the order but shaved a dime off of the limit price. The mid-price on the spread has been trading at or slightly above my limit, so there is a chance for that order to fill. With earnings season around the corner, I am a little cautious and do not want to chase this trade by shaving anything more off of the order price.

The S&P 500 is consolidating, pulling back to its trend line and technical support. I have already identified the bear call spread I'm interested in opening but will wait to see if we get a bounce off of support. Once we see a decent up day I'll likely place the bear call spread order. If and when filled, that will complete the upper and lower wings of an iron condor position.

We will talk more about the position as it materializes and I will post updates here, so be sure to check back.

Good trading!

Christopher Smith
TheOptionClub.com