IWM November Iron Condor adjusted; SPX Weekly Credit Spread close to target gain.
1) IWM November Iron Condor
Shortly before the close yesterday, IWM was trading at our adjustment trigger price of 111; and the position was adjusted as outlined in the article posted October 22.
Fill prices for the adjustment were:
Debit to roll calls 3 points to -115/+120: .71
Credit to roll puts 7 points to -106/+101: .20
Credit for new Iron Condor: .40
Below is the adjusted position:
IWM November Iron Condor after adjustment:
The example shown above is based on the original position being a 2-contract trade. In order to maintain credit in the trade, when the adjustment was made the position was increased by one contract; now a 3-lot Iron Condor. This was an increase of 50% of the original margin. The new credit in the position after adjustments is now $124, or 8.3% of the new margin. We will attempt to retain as much of this credit as possible; taking the position as close to expiration as the market conditions will allow.
One of our readers brought forth a great suggestion as an alternate adjustment that I wanted to share. For those who may be concerned about increasing margin as much as 50%, an option would be to bring in the long wings to be 4 points wide rather than 5 when adjusting. This would reduce the margin to $400 per contract, or a reduction of 20% for the sample 3-lot position.
2) SPX Weekly Put Credit Spread
Below is the position as of the close Friday:
SPX November 1 Put Credit Spread:
This position is currently +$55, and our short strike is almost 45 points away from the closing price of SPX Friday. Our GTC order is in to close the position for .20, which will be the target gain of $70 before commissions.
I will post trade updates as appropriate.
As always, stay keen on your risk management and trade carefully,