[Closing Put Side of Iron Condor on Baidu.com (BIDU)]
Dear Member:
Baidu.com (BIDU) has been quite volatile today with an 18 point swing and even got below my magic 290 level. With only a couple of days to go until expiration, I see no point in letting a profit to turn into a loss so I am placing an order to close the put legs with the following order:
I am placing an order to simultaneously buy to close the Jan 290 puts (BDUMY) and sell to close the Jan 280 puts (BDUMX) at a debit limit of $1.50. If filled, that should give reasonable assurance that the whole trade will wind up with a $1.00 gain or a return on risk of 13.3% before the small commission.
I probably could have done better, but 13+% in 21 days is far from a bad result.
DISCLOSURE: At the time of publication, I hold the iron condor on BIDU.
Sincerely,
Bill Kraft
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