This RILY Iron Condor Could Turn 85% Profit in 14 Days
Outlook is neutral, with stock confined to a channel of ±12%
Strategy has +85% ROI potential and 182% overvalued
Option Profit Calculator for RILY Iron Condor at 15-Dec-23 Expiration
If RILY stock price at expiration is between $20.00 and $25.00, this spread has a 85% upside potential
As you can see in the chart above, the most profitable outcome is for RILY stock price to close between $20.00 and $25.00 at the December 15, 2023 expiration. Within that price range, all of the options will expire worthless, and you'd keep the original $2.30 credit you received at the time of the trade.
The maximum gain will be realized if the stock price is between $20.00 and $25.00. The maximum gain is $2.30
The maximum loss would occur if the stock price at expiration is below $15.00 or above $30.00. The maximum loss is $2.70
RILY Spread Current Market Price vs. Historical Average
RILY Iron Condor is trading at a 182% premium to historical average.
Using historical data to measure how a similar spread in RILY was priced in the market, the 4-year average value was 0.82, with a high mark of 2.71 and a low of 0.41.
Currently, this iron condor is bid at 2.30 and offered at 3.65. The midpoint of the spread is 2.97.
If we use 0.82 as our historical fair value benchmark, the current market bid price is at a 182% premium, while the current market midpoint represents a 264% premium.
|Historical Values of Similar Iron Condors
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