SPY February Iron Condor Stop Loss Hit, Position Closed
The continuing rally was too much for the February SPY Iron Condor; the stop loss triggered and the position was closed this morning as follows:
- BOUGHT SPY February 280 Call, 1.84 Debit.
- SOLD SPY February 285 Call, .54 Credit.
- BOUGHT SPY February 264 Put, .48 Debit.
- SOLD SPY February 259 Put, .32 Credit.
Closing order executed as a single order: BUY " Iron Condor" .
Net Debit to Close Iron Condor: $1.46 (all four legs).
Net Credit to Enter Iron Condor (January 8): $.84 (all four legs).
Loss of -$62.
This represented 15% of the margin/risk, our pre-set max loss for the trade. This year has not been kind so far for non-directional trades such as the Iron Condor, so it is important to practice due diligence and stay firm on stop losses. It's still very early in the year and the results for this play can turn positive at any time.
As always, stay keen on your risk management and trade carefully,