# Iron Condor (IC) on ABT, DXCM

Our IC on ABT lost money this week as ABT stock increased in value. The table below shows the current status (ignore the -15 ABT 02/19/2021 \$127 Calls as they are part of a covered call).

The “wings” of our IC include a call spread of \$125/\$135 (10 point spread) on the upper side and put spread \$110/\$120 (10 point spread) on the lower side. When we established the IC we received \$13,255 in premium for selling the two spreads.

Max Loss = Spread between the wings (10) * #contracts (30) * 100 shares per contract – Premium Received = \$16,745.

Current stock price of \$128.23 is above the lower strike on our call spread.

To realize max profit we need ABT to be between \$120 and \$125. When we set up the IC it seemed like a reasonable assumption. In hindsight I should have used a wider range. A wider range would have reduced the premium received (Max Profit) but increased the probability of the stock remaining inside the range. Position is currently losing \$1,225.

The position has a lot of time left (expires March 19) and ABT may drop back. If the price goes above \$135 we will incur the maximum loss. We do have an option of rolling up the Put from \$120 to \$125 which would generate additional premium and reduce the maximum loss.

Yesterday I established a new IC on DXCM following the earnings announcement. Took the lesson learned about wider range. The options in the table below with the quantity 20 and -20 make up the IC. The spread between the put spread (\$360) and call spread (\$460) is much wider than what we did on ABT IC. The stock has a \$100 range to move and allow us to make maximum profit. Our Max profit is the sum of the premiums received (\$15,680). Max Loss is the spread of the wings (20) x number of contracts (20) x 100 shares per contract – Premium Received = \$24,320. Current profit is \$1,340…….