[TheOptionClub.com] Re: Confusion over Iron Condor

 

Thanks very much for all your replies!

Chris,
wow! Great explanation thanks.
I put this trade on knowing that this market was going to be volatile and would more than likely need many adjustments. I thought it might be a good "test case" I don't think I would be putting real money into yet until I am bit more experienced. (I'll stick to the basic Vertical Spreads etc for the meantime)

My Theta when entering this trade was high (140) So I believed that as time went on, as long as the underlying traded comfortably within my range the position would start to become profitable. My deltas on the position now is -51 and my short calls delta is 31. I believe that this needs immediate adjustment. Some ideas I had was to buy either 1 DEC 600 call or 2 additional 630 calls. Both getting me back to delta neutral. Or I could roll.

I did take screen shots of the position in optionvue but unfortunately don't know how to upload them :(
Thanks again for all your help guys, any more suggestions would be appreciated.

Kevin

--- In OptionClub@yahoogroups.com, "kevinh01010101" <kevinhelman@...> 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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