MSFT opened the day within our range of 227.5 to 270. However, MSFT has pushed higher throughout most of the day and has hit our stop-loss. As a result, I am going to exit the trade for a small loss. I don’t want to take a what is now a small loss and turn it into something larger. I will discuss the trade further in our upcoming subscriber-exclusive webinar, at noon ET this Friday.
Here is the trade:
Simultaneously:
Buy to close MSFT July 29, 2022, 270 calls
Sell to close MSFT July 29, 2022, 275 calls
Buy to close MSFT July 29, 2022, 227.5 puts
Sell to close MSFT July 29, 2022, 222.5 puts for roughly $1.30 or $130 per iron condor (prices will fluctuate, please adjust accordingly if you wish to exit the trade)
If you are having issues exiting the trade, you can always exit the tested side of the iron condor first (in our case the call side), followed by the untested side. Also, if you choose to hold the trade to seek a greater profit, please be aware of the risks.