[TheOptionClub.com] Another Condor Adjustment Question

 

Let me start by thanking all of you who give advice and knowledge so freely. This group has been very helpful in my ongoing education.

I am paper trading Iron Condors in my TOS account and have a very basic (some would say dumb) question to ask. I have a position in IWM that needs adjusting due to the IWM bullish movement over the past couple weeks. The position is an IC with Jan 57/58 Puts and 63/64 Calls. The Delta is around 108 and theta is a bit over $5. I could adjust the position by purchasing a butterfly and move the calls out a bit or I could sell another IC with 63/64 Puts and 68/69 Calls that would reduce my delta to less than 15 but would also reduce my theta to under $4. My question is how best to determine the pros and cons of these two adjustment trades and determine the better action. What other things should I consider when making this type of adjustment? Thanks in advance for helping with this very basic question.

Tony

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