Double checking on the Iron Condor numbers I see....

[marc82much]

Ok, so I am noodling out some ideas in TOS. I came up with this IC trade....

When I click CONFIRM AND SEND, I see this...

It is telling me my max loss is $25 and the max profit is $475.00. Is this correct? Is there something I am missing? If this is really possible, does it not look like a good trade? It does to me. But, as usual, I could be wrong.

 

[MrMuppet]

it's a short IC, so basically a bull call spread and a bear put spread.
it's long vol and long time...so more or less a cheaper version of a straddle.

if it's a good trade is for you to decide. break evens are 50$ away each side.

however, it seems that you calculated these with ToS over the weekend, so pricing might not be accurate.

 

[stepandfetchit]

I suspect TOS's after hours BID and ASK pricing reflected in that order workup is missleading. I see what you see. Look at the very wide BID/ASK spread! If market is not open, the pricing you see may have little value. -- I only use pricing during market hours.

 

[marc82much]

Ah! Thanks. That makes sense. I will have to remember that when I play around with ideas on the weekend. The CR shown is midway between the BID and ASK, so I am guessing if I put this order in, there is a poor chance of getting it filled. Would that be your take, as well?

 

[stepandfetchit]

Ah! Thanks. That makes sense. I will have to remember that when I play around with ideas on the weekend. The CR shown is midway between the BID and ASK, so I am guessing if I put this order in, there is a poor chance of getting it filled. Would that be your take, as well?

Agreed! If I got a fill on that order, I would be surprised and pleased!

 

[donnap]

Your first order entry shows a long IC.

The Order Confirmation Dialog is showing a short IC. Which is +1400C - 1405C, +1320P -1315P. Debit spreads on either wing.

Very low volume and OI for all of the strikes except the 1400C.

Yeah, not likely filled for .25 for now.

 

[marc82much]

Drat. I thought I would put in a 20 contract order then relax on EZ Street.

 

[destriero]

There is far less volume in GOOG over GOOGL. July is the reporting month for GOOGL but it's having no impact on the switches (vol-diff between tenors) as stat-vol is higher than the likely reporting (stat) vol on the release date.

The same structure in GOOGL is 4.45 mid.

My guess is that the 4.45 mkt is marketable at 4.10-.20. The shares are down 115 in three days, and you're only 30 OTM on the put vert.

It's still a good trade risking a buck or less.

 

[destriero]

Your first order entry shows a long IC.

The Order Confirmation Dialog is showing a short IC. Which is +1400C - 1405C, +1320P -1315P. Debit spreads on either wing.

Very low volume and OI for all of the strikes except the 1400C.

Yeah, not likely filled for .25 for now.

No Donna, it's showing the short condor. Both pics are showing the same position. Quote the position and flip the signs. It's a $25 req with either long or short.

Finally, the "order description" would be green if he were going long the IC (i.e. long the inside wings; buying the 320/400, short the 315/405).

 

[guru]

I just charted the price of that IC using mid-prices over Friday. This usually allows me to estimate somewhat fair/marketable value. It seems to be closer to -$3.65, if you can get that much. Still may not be a bad bet, while you can try to get a better price.