In order to conserve buying power, I prefer selling iron condors in high priced stocks instead of strangles. This trade features an Oct 23 expiry which is shorter than usual in order to be out by the election. This is a large bet that ADBE’s share price will remain strong next week. I hope to take it off for a $2 to $3 winner. The risk is to the downside which is what I need to add to the portfolio. The maximum loss for a 10 lot is $25,000 minus the credit received. The good news is that there is no theoretical risk if ADBE exceeds the short call strike price as the profit would be baked in as long as the credit received exceeds $2.50.
ADBE Oct 23 475P/-500P/-530C/532.5C for a credit of $5.00.