Easy Option Trading – Iron Condor Using Salesforce.com CRM

Today I used an easy option trading strategy to trade around an earnings report. Yesterday, Salesforce.com, (ticker CRM) reported earnings. Typically, there is a lot of volatility before earnings, and sometimes there is still elevated volatility afterward.

easy option trading

Salesforce.com Earnings Report

The earnings reported were 61 cents per share, which were significantly higher than earning reported 1 year ago of 39 cents per share.

Salesforce.com reported an increase of revenues of $3.39 billion, an increase of 26% year over year. When the market opened, the stock popped up to a little over $139 a share and started to drift downward as traders tried to absorb the results.

Options Strategies – Iron Condor

One of my favorite options strategies that I use to make money is called an Iron Condor. You can see what it looks like below. It is basically a short put spread and a short call spread combined.

I sold the 115 / 120 put spread and the 150 / 155 call spread for January 18th, 2019 expiration, which is 51 days away. I collected $154 as my premium.

options strategies

Best case scenario would be for CRM to stay above 120, and below 150. If so, I would get to keep all of my premium. But honestly, I plan to buy this iron condor back, for half of what I sold it for.

Here is another way to look at this trade. You can see that I sold the 120 puts and the 150 calls in red, and bought the 115 puts and the 155 calls which are in green.

stock options strategies

I like iron condors because they allow me to limit my risk while taking advantage of time decay. The iron condor is one of the best options strategies for beginners who want to take a non directional position on an underlying stock.

 

James

I live in Pittsburgh PA with my family. I am 50% WWE Wrestlemaniac, 50% Walt Disney World nut.

7 thoughts on “Easy Option Trading – Iron Condor Using Salesforce.com CRM

  • November 28, 2018 at 5:52 pm
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    James,

    I have always been intrigued by the stock market. I am curious as to what platform you started out on? I haven’t dove in to day trading or anything yet but am flirting with the notion. Have you every follows Tim Sykes and his strategies on penny stocking? I find it to be more like gambling and playing odds than really following metrics. But yet again that is penny stocks and not typical day trades or mutual funds.

    Just curious on your thoughts Thanks for the info.

    Nic

    Reply
    • November 28, 2018 at 6:31 pm
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      I don’t do penny stocks, those are scams.  If you want to learn how to trade, I suggest you open a free account at tastyworks.  You don’t have to fund it at all, but you will get access to all of their free content.

      There is zero risk, so there is no reason to open an account.

      If you do decide to fund it, there is no minimum deposit required to trade, and you will enjoy their low fees, currently at $4 to open, zero to close. Also their margin account only requires a $2000 balance.

      Reply
  • November 28, 2018 at 5:53 pm
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    Great post and good info.

    Actually, I used to be a trader like this, and I used salesforce, but then I quit because I needed the money.

    However, seeing your post, makes me feeling vibes again to start it over again!

    I didn’t think about it anymore, but now, I think i will start again!

    Thanks for sharing it with us, and for letting me start to do it over again.

    Reply
  • November 28, 2018 at 5:53 pm
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    This post has great information about Option trading. The Iron Condor strategy seems like it works a lot better than other strategies. I’ve done lots of reviews on different binary option scams, but it is nice for people to see that it is actually possible to be profitable with trading. There is a lot to learn, but you got it down! 

    Reply
  • November 28, 2018 at 6:04 pm
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    That’s a pretty good money you made there. I am just now starting to learn about investment and trading and I am not gonna lie it has not been so easy for me to understand all this. What does each 115 / 120 put spread and the 150 / 155 call spread mean exactly? I am wanting to learn more and more as I like to work less and increase my passive income so I will definitely check out other articles you wrote. Which book would you recommend the most for a beginner like myself? 

    Reply
  • November 28, 2018 at 6:06 pm
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    I like that iron condor is a limited risk, non-directional option trading strategy.  Even though earning small limited profit, it does work. I don’t have a lot of extra money to work with so the limited risk option really does work best for me.  How do commission charges affect your over all profit?

    Reply
    • November 28, 2018 at 6:27 pm
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      Good question. I use tastyworks, so I only pay $4 to open this trade an zero to close.  Other brokers will kill you in fees, especially if you have a small account.

      Reply

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