The experimental Siamese Condor position is doing well. Our mid-point short puts and calls are at 1310 and the SPX closed at 1307.85. Now, the question arises -- do we want to expose ourself to another trading day and a Friday morning settlement?
Or, do we want to take the money and run? Based on Wednesday's closing numbers, the Siamese Condor position could be unwound for about $8.00. Maybe even less in the morning. I know that the original $13.30 credit limit didn't work out, but I also know that some CPTIers got filled at $12.70.
That means that some traders are looking at a profit of about $4.70. That's not too shabby. Do you want to risk the existing profit in the hopes of hitting the lotto if SPX closes at, or near, 1310? Or do you want to be conservative and grab your profits?
It's a personal decision, but I would close the position and smile all the way to the bank. If you want to be daring, just buy back the short puts and calls and hold the long positions. They're far out of the money, but if Thursday is a chaotic directional day, the long put or call might have value -- but, you'd have to pay attention tomorrow.
I just wanted to give you an alternative. When we put on these positions, we don't have to hold them through expiration. You have other choices.
Think smart, trade smart and stay alert.