IWM is hovering near the upside adjustment point for the March Iron Condor.
IWM closed Friday at 114.06, 3 points from the short call strike of 117. Below is a graph of the current position:
IWM March Iron Condor:
Unless there is a pullback this week, I will adjust the position as per the guidelines. To summarize the adjustment; the call spreads will be rolled up to a new short call strike delta less than .20. Also, in order to maintain sufficient credit in the position, the put spreads will be rolled up to a short put delta less than -.20.
FOMC minutes are due to be released Wednesday at 2 pm EST; unless IWM closes above 115 I will wait until after the news to adjust the position.
It is then a trader's choice whether to increase the position size to keep the original target gain, or accept a lower target due to the cost of the adjustment. I will most likely keep the original position size and accept the lower target gain if the position is adjusted. Neutral, non-directional strategies such as the Iron Condor can be difficult in a relentless trending market, and I personally feel it is not the best risk management to keep adding capital to a trade once it is adjusted.
I will post a trade update as appropriate.
As always, stay keen on your risk management and trade carefully,