Open Position update: IWM December Iron Condor and SPX Weekly Credit Spread for December 1
1) IWM December Iron Condor
Further to my post yesterday morning, IWM was trading at the short call strike of 114 shortly after the open. The continuation of the bullish run has not been kind to this neutral strategy for December, so the position was closed for a debit of 1.26. This resulted in a loss of $(41), or 10% of margin. The cost of adjusting the position was so expensive that it would have been necessary to invest more capital in the position to make the risk worthwhile. Given the strength of the rally (illustrated in the IWM chart posted below), I felt the best risk management was to accept the small loss and move on.
IWM 6 month chart:
As of this writing, I do plan to enter a January IWM Iron Condor sometime during the week of December 9, depending on market conditions. This entry will be close to the looming budget deadline in Washington, so the political battlefield could cause a change in plans.
2) SPX Weekly Put Credit Spread for December 1
Below is the open weekly position as of the close yesterday:
SPX December 1 Weekly Credit Spread:
SPX closed yesterday at 1805.81, a bit over 35 points from the short strike of 1770. The position is currently +$5.03. Our target gain remains at $56.25. I have a "good to cancel" order in to close the position for .15. However, if I can close it for .20 which will net $55 on Monday, I would not hesitate to do so in order to eliminate another overnight risk.
An update will be posted early next week.
As always, stay keen on your risk management and trade carefully,