Trade view /
13 July 2016 at 11:46 GMT
Bonds are now inside the wings of the iron condor initiated back on June 15, pre-Brexit.
Investors can close out of the trade
for a net debit of $0.15 versus $0.83 credit at the time of opening.
This leaves us with $0.68 net credit or 51% ROR.
Investors looking to roll the IC could look into rolling out to August for additional credit. With implied volatility elevated a 19 AUG 146/144/137/135 call/put could be rolled for a net credit of $0.77.
To roll out, you would buy back the existing July IC and sell the 19 AUG IC for net of $0.77 ($0.92-$0.15).
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Source: Saxo Bank
— Edited by Michael McKenna
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