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Today we are applying an Iron Condor on the XJO

Analysis:

The XJO has been tracking sideward for the past month or so in a broad range between roughly 7,475 and 7,300.

A couple of weeks ago, I suggested an Iron Condor for the 18th of November with sold legs at 7,550 and 7,250. Provided the XJO remains between those two sold legs, come expiry day maximum profit is made. Therefor an Iron Condor profits not from bullish or bearish movement, as each sold leg could be threatened. Instead, it profits from sideward movement, which is essentially what we have seen. If you have entered this trade, you would be close to 40% profit already.

If you missed out, it may be worth considering entering a similar position. The XJO continues to trade within a tight range as the U.S consolidates at the top of the range.

One possible setup could be for the 25th of November expiry. The sold legs would be 7,550 and 7,275. Provided the XJO stayed between these levels come the expiry on the 25th, maximum profit would be made.