Murthy, from what I remember, he didn't do the adjustment at the threatened wing at a particular short option delta. He looked at the credit from the initial position and somehow decided how much he was willing to sacrifice to extend the break evens with the butterfly adjustment. I have a great article from SFO magazine which also has a method of iron condor adjustments. This is well worth the read.
http://www.sfomag.
Dan Sheridan likes to look at the short option deltas with his high probability condors when determining the proper adjustment point. I believe he will initiate the position with a delta around 10 and adjust when the short option hits 20. It seems that the butterfly will cost less than if you wait until the delta reaches the high 20's and certainly the 30's. You can also increase the number of contracts on the threatened side in an attempt to maintain the initial credit, but the cost of the trade (margin) increases proportionally (along with the risk). There are probably as many iron condor adjustment techniques as there are iron condor traders!
RFH
--- In OptionClub@yahoogro
>
> In general, did he go over WHEN to do these adjustments?
>
> Murthy
>
> On Tue, Oct 27, 2009 at 4:20 PM, Ricky Jimenez <rickyjim@..
>
> > The first type of adjustment he presented was the familiar widening of
> > a condor by adding a butterfly at the wing. Sorry, but I wasn't
> > paying close attention when he presented the second adjustment. Can
> > anybody supply what it was? I remember that it had positive delta but
> > would be a loss at the wing if held to expiration, so if the
> > underlying kept going higher you could close the entire position or
> > just the call side for a profit.
> >
> >
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