Note to new readers: This is a regular update on the status of our XJO Iron Condor (Mark III) Model Portfolio. Please read the Trading Plan first in order to understand the objectives and the rules for trading this model portfolio.

Our November iron condor was another winning trade. We almost reached our profit target of 50% of credit collected on 22 October but the 100 point rally the following day wiped out some of our unrealised profit. The market has remained stubbornly bullish and with the US Fed meeting tonight, I decided to take profit early and closed the trade on the 27 October, just in case the US Central Bank decides to join its European and Chinese counter parts in doing more QE or cutting interest rates.

XJO chart 27 Oct 2015

We track our monthly performance without including brokerage cost as this will vary from broker to broker. Our performance as of November 2015 is a total profit of $2600 or a 13% return on our trading capital of $20,000 for this model portfolio.

XJO IC Performance as at Nov 2015

We opened our November IC (a 5475/5675 call spread and a 4925/4725 put spread) on 12 October (38 DTE) when XJO was trading at around 5250. This is a little bit later than normal but I was busy the week before. IV Rank was only 43% when we opened the trade. IV had fallen a lot after the bullish run the week before so option premiums were not as rich and we only managed to collect 47 points for our 20 delta iron condor. The November IC was only 662 points wide which is much narrower than our October IC.

As usual, we will open our December iron condor after the November RBA meeting which will be held on Melbourne Cup day. I will provide another update on this model portfolio after the December  trade is closed.

Disclaimer: This post is for educational purposes only and should not be treated as investment advice. This strategy would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek investment advice if required.

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