Condor Options

XLF, the Financial sector ETF, maybe double-bottoming here in the short term. Or it may not. But implied volatility in the April options is at 49.81%, and we know for sure that implied volatility in the options is well above the historical volatility, so we want to sell a little bit of premium here.

We’re opening the following iron condor for April expiration:

+1 XLF April 29 call
-1 XLF April 27 call
-1 XLF April 20 put
+1 XLF April 18 put
for a net credit of $0.49.

If we see a brief market bounce later this week, you may be able to pull some quick profits in a volatility crush.

[tags] iron condor, xlf, financials, options, trading [/tags]