So I decided to open an Iron Condor in my ROTH IRA Account (I may also open a regular strangle in my trading account too):
BTO 1 TECK May26 27.50 call
STO 1 TECK May26 25.00 call
STO 1 TECK May26 18.00 put
BTO 1 TECK May26 15.50 put
@ 0.35 credit limit day
The trade filled for 0.43 credit.
You may have heard me saying many times that I do not like (hate) verticals. That is still true, however, that doesn’t mean that I do not use them time to time. There are the following situations when I use them (because I have no other choice):
1) the stock is too expensive to trade naked options
2) to reduce margin requirements in a small account
3) in IRA accounts where it is not allowed to trade naked options
The trade executed and I placed a buy back orders on the short legs only (to buy back for 0.05 debit). If any of the side gets breached I will attempt to roll that side.