We lost most of our capital in the option trade yesterday as the market traded higher above our profit range.

We are making a similar trade today. Keep your risk in check with these trades as we may be making more of them going forward, and you will have plenty of losses along the way when making 50/50 option trades that expire the next day, but I think we are in a profitable trade set up right now to absorb some volatility premium, even with a VIX near $15.

We are placing an Iron Condor in the SPY that expires tomorrow - with a credit of about $0.50 or $50 per 4-leg trade, with a max profit of $50, the credit we receive upon making the trade, and our max loss is $50 per contract pair. 

We are looking for the SPY to close between $435 and $439 as of tomorrow's close. We are giving ourselves $2 on each side as the SPY is  trading just above $437 as of this update. We are selling volatility above $439 and below $435 through tomorrow. 

Sell the Nov 9th $439 call

Buy the Nov 9th $440 call

Sell the Nov 9th $435 put

Buy the Nov 9th $434 put 

This should result in a credit of about $0.50 or $50 per contract pair. We are essentially risking $50 to make $50 per contract pair. Don't go overboard with these trades as we will have many losses when it's very close to 50/50, but I believe a profitable set up longer term with where markets are this week and what is on the horizon. Stay tuned for updates as we could always close one or both sides of this trade depending on how we move through today and tomorrow. 

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