Re: [TheOptionClub.com] Confusion over Iron Condor

 

Are you looking at the P/L line for the current date or at expiration? If you are using TOS, there typically is (depending on how you configure it) a white line for current date and a green line for expiration. You are probably showing a loss on the white line. Use the Analyze tab to really get a feel to what happens to the position as the different variables change (time, price, vol, etc). One interesting thing to do is increase the date and see how the white line (current) approaches the green line (expiration).

On Fri, Nov 6, 2009 at 2:12 PM, kevinh01010101 <kevinhelman@rogers.com> wrote:

 

Hi,
I am very new to Iron condors. I put on a paper trade so I could "mess around" with adjustments etc The position I put on is.

+ 10 ^RUT DEC 490 PUT = $7.5
- 10 ^RUT DEC 500 PUT = $8.7
- 10 ^RUT DEC 620 CALL = $4.5
+ 10 ^RUT DEC 630 CALL = $3.4 TOTAL CREDIT = $2300
RUT 562 at time of condor

After several days and RUT at 580 i see that at this point, although still nicely between my short options prices (althought 22 delta on the short put) it shows me as being down net $1700 and I'm confused to the reason why. Withing my graph if it were to expire now it will be a profitable trade. On this note I do notice that my theta is -137. Still total delta on the Condor is -37

Any help would be appreciated.

Kevin

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