ADBE High IV Rank

11/12/13 -Closed

ADBE has an IV Rank of 95% so we are looking for a vol contraction. We'll be entering a Dec IC with 38DTE. By tightening the call side slightly we can increase our credit, reduce our risk, and give the IC a slightly bearish bias.

• Iron Condor, ADBE @56.02
• STO Dec 57.5 C
• BTO Dec 60 C
• STO Dec 52.5 P
• STO Dec 50 P
• Credit = 1.20
• Risk = 130
• ROR = 92%
• BE = 51.30, 58.70

Update: 12/12/13

With IV Rank still high and our position sitting pretty, I'm adding on before earnings this afternoon.

• Iron Condor, ADBE @54.32
• STO Dec 57.5/60C 52.5/50P
• Credit = 0.78
• Risk = 172

Update: 12/17/13

While ADBE didn't move like I wanted (closed up 6.89 after earnings) my position as a whole is still profitable.

• BTC 52.5P @0.03 debit
• BTC Dec 57.5/60C @0.65 debit
• Cost Basis = (1.20 + 0.78) / 2 = 0.99
• Net = $31
• Risk = 302
• ROR = 10% in 35 days