AFRM Iron Condor (HotTrade) CLOSED for 19% ROI

10/20/21 Closing Instructions – We are at about 50% of our profit target, so I’ve closed this one out in 2 separate trades because the 4 legs were not filling at my asking price. 19% ROI.

Closing Order #1, for $50 debit

  • Buy to close the Nov 19 190 call
  • Sell to close the Nov 19 195 call

Closing Order #2, for 33 debit

  • Sell to close the Nov 19 100 put
  • Buy to close the Nov 19 105 put

Based on $350 of buying power, the $150 we collected on entry, and the $83 we gave back to close, that’s 19% ROI.

– Jerry

What’s the trade?  

Sell a 5 dollar wide Iron Condor 100/105/190/195 in AFRM for $150 credit or greater.

With AFRM trading at 135 on 10/11:

  • Buy the Nov 19 100 put
  • Sell the Nov 19 105 put
  • Sell the Nov 19 190 call
  • Buy the Nov 19 195 call
  • Premium: Try to collect at least $150
  • Rationale: This is a defined risk trade. You can make up to $150 if AFRM stays between 105-190 on expiration. AFRM has an IV Rank of 73.4% which increases the premium you will collect. This trade collects $1.85 in theta decay each day.
  • Probability of making 75$: 75%
  • Max Loss: $350
  • Assumption: Neutral

Timeframe: ~1-4 weeks

Leave a Comment