[Attachment(s) from Mike Cleveland included below]
Greetings,
I am considering making an adjustment on my MNX Iron Condor, as it is approaching the short call. I'm not wanting you to adjust my trade for me, trying to avoid that, just asking your opinion on the adjustment below. I've also attached a "before" and "after" pic. I also did post this on one other option board, just to see if there may possibly be different opinions/suggestions.
What I thought about doing was to close both of my current calls, and open another call spread at a higher price. So here is what I would have:
Sold 195 Call at .78 to open, buy 195 Call at 1.21 to close = -.43
Bot 197.50 Call at .45 to open, sell 197.50 Call at .63 to close = .18
Loss on the position so far = -.25 ($25.00)
Sell 200 Call at .31 to open, buy 202.5 Call at .21 to open = .10
Cost of adjusting trade = -.15 (-$15.00)
Commission at $1.50 each = $6.00
Total Cost of adjusting trade = -$21.00
Breakeven:
195.62 before
200.68 after
Questions:
1. Is this an appropriate method for adjusting a trade that appears to be getting close to the call short?
2. Would you, personally, do this adjustment now, or wait until price gets close to the call short?
3. Do I have the math correct above?
4. Are there other options that would be better to consider?
Thank you very much.
Mike
I am considering making an adjustment on my MNX Iron Condor, as it is approaching the short call. I'm not wanting you to adjust my trade for me, trying to avoid that, just asking your opinion on the adjustment below. I've also attached a "before" and "after" pic. I also did post this on one other option board, just to see if there may possibly be different opinions/suggestion
What I thought about doing was to close both of my current calls, and open another call spread at a higher price. So here is what I would have:
Sold 195 Call at .78 to open, buy 195 Call at 1.21 to close = -.43
Bot 197.50 Call at .45 to open, sell 197.50 Call at .63 to close = .18
Loss on the position so far = -.25 ($25.00)
Sell 200 Call at .31 to open, buy 202.5 Call at .21 to open = .10
Cost of adjusting trade = -.15 (-$15.00)
Commission at $1.50 each = $6.00
Total Cost of adjusting trade = -$21.00
Breakeven:
195.62 before
200.68 after
Questions:
1. Is this an appropriate method for adjusting a trade that appears to be getting close to the call short?
2. Would you, personally, do this adjustment now, or wait until price gets close to the call short?
3. Do I have the math correct above?
4. Are there other options that would be better to consider?
Thank you very much.
Mike
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Attachment(s) from Mike Cleveland
2 of 2 Photo(s)
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