Re: [TheOptionClub.com] Confusion over Iron Condor

 

You should be positive theta on the whole position.  Can you elaborate?

----- Original Message -----

From: kevinh01010101

To: OptionClub@yahoogroups.com

Sent: Friday, November 06, 2009 4:12 PM

Subject: [TheOptionClub.com] Confusion over Iron Condor

 

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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