Today we are going to add a new rung to the XBI-laddered Iron Condor. Premiums were not that great in the 24 days to-expiration cycle so we are going out to the 31 DTE where premiums are excellent. We had made the decision to wait until putting the new ladder on until after the holiday. That turned out to be a good decision as there was significant volatility in the futures overnight session which extended into the morning. Prices have now stabilized and this is a good point to put on the new XBI ladder rung.
TRADE: Laddered Iron Condor
SPDR S&P Biotech ETF (XBI): 82.22
Trade Action: Sell/STO the 3 Feb 70/75 puts and the 90/95 call iron condor for a credit of around 1.40-1.50
STO the 3 Feb 75 puts
BTO the 3 Feb 70 puts
STO the 3 Feb 90 calls
BTO the 3 Feb 95 calls
The 50K master portfolio will be trading 5 contracts and requires $2500 of margin for the trade.