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Options Trade Alert: May Iron Condor on Apple

Using ATM (at-the-money) volatility there is a 63% probability of this trade retaining the max credit collect, $2,560.

At Top Gun Options our risk management ROE (rule of engagement) is to never risk more than 5% of our Primary Model Portfolio on any one trade. Using our $100,000 virtual account, this equates to $5,000.

As the "pilot in command" of the Portfolio, I am comfortable being just slightly north of our ROE.

Threats to Success: Earnings next week on 24 April. Apple tends to "under promise and over deliver" but our short strikes are well outside the historical moves the stock makes around earnings. Additionally, Apple could unveil something new in the next month that is not already factored into the current stock price.

Eject Criteria: We plan on letting this trade expire worthless and collecting the max credit in the Primary Model Portfolio, or we will manage the trade according to our Midcourse Guidance. As always at Top Gun Options, we eject from the trade if our Commit Criteria change.

Stock quotes in this article: AAPL 
Matthew "Whiz" Buckley is the Founder and CEO of Top Gun Options, an exclusive provider of options training and practical trading applications for options traders of all skill levels. He is also the founder of Strike Fighter Financial LLC, a business-consulting firm specializing in leadership development, risk management and strategic planning for Fortune 500 companies and related organizations. He's also a Managing Partner and Chief Financial Strategist at Wealth Creation Investing. Buckley flew the F/A-18 Hornet for the U.S. Navy. He's a graduate of TOPGUN, has close to 400 carrier landings and flew 44 combat sorties over southern Iraq. After leaving active duty, he served as a Managing Director at a Wall Street volatility arbitrage options firm and was a founder and the CEO of a financial media company. He is an internationally recognized speaker and combined his experiences in the military and corporate America in his first book "From Sea Level to C Level."

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