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Rapid Trade of the Week Same-Day SPX Iron Condor — 14.38% Return on Risk Some trades depend on predicting where the market is going. Others simply depend on where the market doesn’t go. This week’s Rapid Trade is a Daily Profit Play focused on the second idea. The setup used a same-day iron condor on the S&P 500 Index (SPX), a strategy designed to benefit when price stays within a defined range while time decay works in your favor. Here’s the exact structure of the trade. 🟢 Trade Entry — March 2 (Same-Day Expiration) Sell 6900 Call Buy 6910 Call Sell 6690 Put Buy 6680 Put 📥 Credit Received: $2.00 per iron condor This creates two spreads at the same time: • A 10-point call spread above the market (6900–6910) • A 10-point put spread below the market (6690–6680) Together, these form the iron condor. In plain English, the trade says: SPX will likely stay between 6690 and 6900 through the end of the trading session. As long as the index stays inside that range, the options above and below the market steadily lose value as expiration approaches. Because this trade used same-day expiration, that time decay happens quickly — which is exactly what iron condor traders want to see. The position also has defined risk. The spreads are 10 points wide, and with a $2.00 credit collected upfront, the maximum risk is $8.00 per spread. That structure keeps the trade controlled from the start. 🔴 Trade Exit — Same Day The position was closed later in the session for: $0.85 debit Here’s how the profit works out. -You collected $2.00 when the trade opened. -You paid $0.85 to close the position. -That leaves a $1.15 profit per spread. Since each SPX contract represents 100 units, that equals $115 per iron condor. Now compare that to the defined risk. The maximum risk on the trade was $8.00 per spread (or $800). $115 profit ÷ $800 risk = 14.38% return on risk. And all of that happened in a single trading session. That’s the appeal of well-structured same-day options trades. You don’t need a huge directional move. You simply need the market to behave reasonably — staying inside a range while the clock drains value from the options. When structure, timing, and volatility expectations line up, an iron condor can quietly do its job. Defined risk. Same-day resolution. And another rapid trade that wrapped up before the closing bell. — Rapid Trades |
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