This XLI Iron Condor Aims for 41% ROI in 15 Days
Outlook is neutral, with stock confined to a channel of ±2%
Strategy has +41% ROI potential and 4% overvalued
Expiration | 16-Aug-24 |
Buy | 119 Put |
Sell | 123 Put |
Sell | 129 Call |
Buy | 133 Call |
Credit: | $1.16 |
Option Profit Calculator for XLI Iron Condor at 16-Aug-24 Expiration
If XLI stock price at expiration is between $123.00 and $129.00, this spread has a 41% upside potential
As you can see in the chart above, the most profitable outcome is for XLI stock price to close between $123.00 and $129.00 at the August 16, 2024 expiration. Within that price range, all of the options will expire worthless, and you'd keep the original $1.16 credit you received at the time of the trade.
The maximum gain will be realized if the stock price is between $123.00 and $129.00. The maximum gain is $1.16
The maximum loss would occur if the stock price at expiration is below $119.00 or above $133.00. The maximum loss is $2.84
XLI Spread Current Market Price vs. Historical Average
XLI Iron Condor is trading at a 4% premium to historical average.
Using historical data to measure how a similar spread in XLI was priced in the market, the 4-year average value was 1.12, with a high mark of 1.66 and a low of 0.47.
Currently, this iron condor is bid at 1.16 and offered at 1.37. The midpoint of the spread is 1.27.
If we use 1.12 as our historical fair value benchmark, the current market bid price is at a 4% premium, while the current market midpoint represents a 13% premium.
Current Price | Historical Values of Similar Iron Condors | ||||
Bid | Ask | Midpoint | Average | High | Low |
1.16 | 1.37 | 1.27 | 1.12 | 1.66 | 0.47 |
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