Today, I opened a credit put spread using the October 2017 ODAX options.
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| Dax on August 2nd. Source investing.com |
Trade status
| Type | Name | Open Date | DTE | Spot | Max Win | Max Loss |
| Put Spread | ODAX Oct 2017 11300/10800 | 2/08/2017 | 79 | 12250 | 206,50 € | 2.293,50€ |
You can see all the trade details here.
Usually, I should have opened both legs of the Iron Condor (a Put Spread and a Call Spread) at the same time, but this time I have not.
The rationale behind this decision is that the index has dropped already 6% from the last high and currently sits on a support (we had a gap some months ago around 12100) so I fear a rebound that might hurt any possible Call Spread deployed around 12900 (16 delta).
Of course, although the probability of max loss is lower in a credit spread than in an Iron Condor, the maximum loss is bigger (I did not receive any credit from a call spread). To make things more interesting, I used a 500 points wide spread, so the max loss would be bigger in this case.
All this will be taken into account when closing/adjusting this trade, hopefully it should be quicker than usual.
See also
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