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BookingAlpha Option Trading Advisory

Wednesday, October 28, 2015

December Iron Condor adjustment

Today I adjusted the unbalanced SPX 1790/1795/2135/2140 December Iron Condor as the market keeps defying gravity. If you click on the link you can see had originally received $220 for this unbalanced Iron Condor (adjusted to the model portfolio size).
I closed the Call side for 1.80 debit today (total $360).

I also closed the Put side of the Iron Condor for 0.10 debit. Originally received 0.30 credit for these. So, to not over complicate things, here is the deal:

2135/2140 Credit Call spreads, Initial credit: 0.50, debit to close: 1.80, loss: 1.30 -> -$260
1790/1795 Credit Put spreads, Initial credit: 0.30, debit to close: 0.10, gain: 0.20 -> +$80
So as a result, this unbalanced Iron Condor is totally closed and caused a $180 loss to the model portfolio. End of story.

I sold a new Iron Condor SPX 1880/1885/2190/2195 collecting 0.30 credit on the Puts and 0.50 on the Calls. 3 contracts per leg for a total credit of  $240. The Call side is now way above the 2134 all time high. If this Iron Condor ends up being a full winner it will more than compensate for the original $180 loss. I rolled an entire Iron Condor instead of just the affected side as usual because the indicators I follow have incredibly gone to no man's land.

SPX Chart at market close for future reference:
(Click on image to enlarge)

Current Positions in the portfolio:

Nov SPX 1630/1640/2130/2140 Unbalanced Iron Condor
Call side may need attention on rally to around 2100

Nov SPX 1945/1950 Credit Put spread

Dec SPX 1880/1885/2190/2195 Iron Condor
The new position discussed in this article.

Dec RUT 1010/1015/1240/1245 Iron Condor
Still looking good, nothing to do until a rally up to 1210 takes place. RUT currently at 1178.

Check out 2015 Track Record

Related Articles:
Weekend Portfolio Analysis (November 1, 2015)
Weekend Portfolio Analysis (November 14, 2015)
Weekend Portfolio Analysis (November 22, 2015)
Weekend Portfolio Analysis (November 28, 2015)
Weekend Portfolio Analysis (December 5, 2015) 
Position expires for Max Profit

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