This morning's pullback has helped our open position.
With the government shutdown continuing, the markets opened sharply lower this morning. This was a welcome relief for the October IWM Iron Condor. The position is shown in the graph below.
IWM October Iron Condor:
IWM October Iron Condor
As of this writing, the position is currently +$29.46, or 7.5% of the actual margin. Our target gain on this position is 10%, or $41. If the market continues to move down, it will continue to benefit this position. However, if the situation in Washington is resolved, I would not be surprised to see the market rally, which could put the position into requiring an adjustment to the call spreads. With only 14 days remaining until October expires, a more conservative approach may be to close the current position for less than target gain. The current debit to close the position is .57. More aggressive traders may choose to stay in the position for the original target.
However, being the conservative trader that I am, I will close this open position today, and look forward to the next trade entry which will be sometime next week for the November monthly cycle. This position has weathered some large intra-day moves since we entered in back on September 11, and I will be grateful to accept a 7 or 8% gain and move on.
As always, stay keen on your risk management and trade carefully.