CVX Iron Condor - 2026-01-02

Trade Date: 2026-01-02
Symbol: CVX
Status: CLOSED
Market Regime: neutral

Trade Setup

This week's dividend anomaly pick targets CVX with an Iron Condor spread designed to capture premium during the pre-dividend volatility compression window.

Strike Prices

• Short Call: $152.27
• Long Call: $156.44
• Short Put: $143.93
• Long Put: $139.75

Trade Metrics

• Target Premium: $83.40
• Max Loss: $417.00
• Win Probability: 71.7%
• Risk/Reward Ratio: 5.00:1

Entry Window

Entry Period: Jan 3, 2026 - Jan 6, 2026

Enter this position during the specified window when implied volatility is elevated ahead of the ex-dividend date. The system identified this opportunity based on historical volatility patterns and dividend announcement timing.

Market Analysis

The current market regime is neutral, which influences our strike selection and position sizing. In neutral conditions, we center our strikes symmetrically around current price.

Trade Outcome

Result: WIN
P/L: +$15.77
Return on Risk: 3.8%

This trade closed profitably as CVX remained within our profit zone through expiration. The dividend anomaly played out as expected, with implied volatility collapsing post-ex-date.

Risk Management

• Position Size: $1,000 allocated capital per trade
• Max Loss: $417.00 (41.7% of capital)
• Defined Risk: Iron Condors have built-in protection via long options
• Exit Strategy: Close at 50% profit or max loss, whichever comes first

Notes

Backtest trade - historical simulation

This trade is part of the Dividend Anomaly System's systematic approach to capturing pre-dividend volatility inefficiencies. Past performance does not guarantee future results.