IWM October Iron Condor Update

I wrote yesterday afternoon that the new alert trigger for an adjustment on the October IWM Iron Condor was 1 point before the short call, or when IWM reaches 108. If yesterday's rally continues forward today, that may likely occur. If IWM reaches 108, I will wait before adjusting until this afternoon, to see if a close above 108 is likely. Depending on the market movement today, I will either adjust this position late this afternoon or Friday morning. The recommended adjustment is as follows:

Roll up calls 3 points for a debit. The new call spreads would be -112/+117. As of this writing, the delta of the new short call is .12.

For those of you who may be in this position, it is up to you whether you now want to increase the size of the new position to increase overall credit in trade to offset the cost of the adjustment. It is not recommended to increase more than 50% of the original position. If anyone chooses to do so, the new Iron Condor strikes would be:

Calls: -112/+117.

Puts: -98/+93.

Target gain remains at 75% of the new credit, max loss remains at 100%.

Trade updates will be posted as appropriate.

As always, stay keen on your risk management and trade carefully.

Dot Hazlin