Covered Calls

[gtober]

Iron Condor Paper Trade. May as well learn this right now.

NEM April options.

Buy April 42.5 put, sell April 45 put. Net gain of 0.71 (1.36-0.65)

Buy April 52.5 call, sell April 50 call. Net gain of 0.45 (0.95-.50)

I realize that writing combo orders will likely yield better overall premium.

Total collected premium is 1.16
Total potential loss is 1.34 (2.5-1.16)

Right off the bat, the thing I am most uncomfortable with is the nearness off the strikes that I have written the options against. To me, the loss seems very likely.

However, in order to mitigate that risk one has to go further out in strikes and the loss of premium is significant.