RUT February Iron Condor closed before taking on the weekend risk.
I wrote earlier today that since this position has already been adjusted twice, the better risk management is to consider exiting the position before the selloff continues, and the position has the risk to reach max loss. I took action, and recommend those in the position do the same before the end of the day.
Closing Order Executed:
- BOUGHT RUT February 1610 Call, 2.72 Debit.
- SOLD RUT February 1660 Call, .35 Credit.
- BOUGHT RUT February 1570 Put, 25.56 Debit.
- SOLD RUT February 1520 Put, 7.75 Credit.
Closing order executed as a single order: BUY " Iron Condor" .
Net Debit to Close Iron Condor: $20.18 (all four legs)
The 1730 Long Call purchased at trade entry has a zero bid/ask, so there is no reason to close it.
The closing represented a loss (before commissions) including adjustments of $248, or 4% of the gross margin. Never easy to swallow a loss, but there is some comfort that the risk of reaching the 10% max loss is off the table.
As always, stay keen on your risk management and trade carefully,