Status report on February IWM Iron Condor.
Below is the 6 month chart for IWM; it goes without saying how volatile last week was.
IWM 6 month Chart:
IWM closed Friday at 112.16. Below is the current position as of the close:
IWM February Iron Condor:
The position is very positive delta, and a rebound next week would certainly help. However, there are still 18 days to expiration, so we will continue to manage the position as per the guidelines. The downside adjustment trigger is if IWM closes below 111; the action called for at that time is to roll the put spreads down 3 points.
At this point, target gain remains at 10%, max loss 15%.
Having said that, it is a traderâ€™s individual decision whether to wait for target gain, or max loss, on any position. Trading is a blend of oneâ€™s individual style, risk tolerance, and intuition. This combination can help reach your annual trade plan results. I recommend following your own trade style; there is nothing wrong with exiting a position early.
With regards to the SPX weekly credit spread, a new position will be considered for entry on Friday, rather than the usual entry date of Thursday. Friday before the open brings the monthly Non Farms Payroll report; which has the tendency to cause big moves one way or the other.
I will post a trade update next week.
As always, stay keen on your risk management and trade carefully,