Iron condor-when to adjust

#1
Iron Condor in option trading involves Call credit spread and put credit spread.
After entering the position the index moves in one direction and either callside or put side will be in trouble.
In such case any of the side may go into deep trouble. If I wait till expiry I may end up incurring max-loss in the position. Whether I have to book loss before expiry or try to roll up (if possible). If so precisely when?
Whether I have to monitor my loss on my total position or the troubled sideonly (call or putside-here net position may still under profit when we take position of call spread and put spread together). I am confused. Veterans please help me clearing my doubts.


eXAMPLE:
16/9/16 23/9/16
8400 P S 42.00 21.20
8200 P B 23.50 11.00
18.50 -10.20 8.30 44.86486486
9200 C S 32.00 39.60
9400 C B 11.00 12.25
21.00 -27.35 -6.35 -30.23809524
14.62676963
On 16/9/16 I entered the iron condor position as above. On 23rd my position-profit of 44.86% on put side, loss of 30% on call side, but net 14.6% profit.
Here what I should do? Should I consider total net position, or call side only position? Please clarify.
 
Last edited:
#2
By reading some blog on iron condor I got the answer that I have to adjust troubled side and should not monitor entire condor position. I have to keep 1% stoploss. Roll up/down/out with a min premium amount equal to loss amount.
 
#3
Gavin an IC expert of Options Trading IQ said I should monitor entire IC. Today my put side is in trouble showing 40% loss and call side showing 20% profit! But put short strike shows -0.14 delta while call short strike shows 0.12 delta for oct exp. That means both are safe. I am totally confused!! Anybody help me to guide me what to do.
 
#4
I am interested in OPTION SELLING-CREDIT SPREAD, IRON CONDOR. After entering these trades if my position becomes negative I am required to ADJUST. There are lot of writings on web regarding adjustment techniques. But when we have to declare our position is a disaster, I could not find.

In case of IRON CONDOR-it is a combination of two credit spreads. Naturally one side of IC will be positive and another side negative.

Please inform:
In case of IC-whether I have to monitor each side and take action-adjustment on affected side OR I have to monitor entire IC and adjust when entire position of IC is negative.

In case of Credit spread-as it is one sided, I presume I have to monitor that position and make adjustments when the position is sufficiently negative.

How much negative is fit for taking adjustment action. Whether negativity on entire trading funds or on troubled position value. Whether loss is 1%,2%,5% or 10% of the fund? Which value is judicious?

On web I could not get an answer for my doubts. Anybody Please clarify
 
Last edited:

Similar threads