10/10/13
This is a purely high IV play. With the 2-month IV Rank at 98%, the inflated premiums offer up a nice Iron Condor. Normally this type of trade is opened around the 1st of the month so there are 45 DTE (days to expiration), but at that time the IV was 15 points lower.
- Iron Condor, NFLX @ 305.80
- STO -1 Nov 390 Call
- BTO +1 Nov 400 Call
- STO -1 Nov 215 Put
- BTO +1 Nov 205 Put
- Credit = 1.47
- Risk = 853
- ROR = 147 / 853 = 17% in 36 days
