Open Position update: IWM November Iron Condor and SPX Weekly Credit Spread
1) IWM November Iron Condor
IWM closed Friday at 108.68. Our current short strikes are the 106 Put and 115 Call, after adjusting the position last week because of the relentless upside movement. I've written before about "whipsaw"; this position is the classic example. As soon as the adjustment was made to accommodate the rally, IWM has now pulled back. The position is currently about breakeven; it needs to be watched carefully if the market is truly reversing. We will stay in the position as close to expiration as possible, as long as IWM stays between the short strikes. However, the position will be exited at the pre-defined max loss, which is 15% of the original margin ($61). While the position margin was increased because of the adjustment, I always keep the max loss as per the original trade.
Below is the current position:
IWM November Iron Condor as of the close November 1:
2) SPX Weekly Put Credit Spread
Below is the position as of the close Friday:
SPX November 2 Put Credit Spread:
This position is currently +$35. SPX closed Friday at 1761.64; our short strike of 1715 is 46 points away from the underlying. Our GTC order is in to close the position for .15, which will be the target gain of $60 before commissions.
I will post trade updates as appropriate.
As always, stay keen on your risk management and trade carefully,