120423 VCTM Iron Condor

Very Close to the Money RUT Iron Condor, using Weeklys options.

Collected $2.80.
RUT Apr 26 ’12 775/780P; 800/805C

8:45 am.
RUT was 789 when this trade was entered

Video below:

View Video

Update. Tuesday 8:42 am

Both short options have a 30 delta. All looks good.

Trade decision: This is an easy one. HOLD.

Update Tuesday 9:35 am

RUT is now 795. The short call has a delta just over 40.

I am entering a low-ball bid to roll the call spread. I do not expect to be filled at this price (unless the market suddenly reverses), but at 30 cents, I am willing to make the trade. If the market rises, I will have to choose between the butterfly (rolling 5-points) roll or the condor (rolling 10-points) roll.

The position has a midpoint value of $2.675

Tuesday 9:35 am CT

Update. Tuesday 10:52 am. Adjustment

I made an adjustment. It was a reasonably conservative move. I could have waited a bit longer, and I could have bid less. But I rolled down 5-=points and paid (more than I would like to pay) $0.60.

View Video

Holding overnight. Nothing else done. It is 2:58pm.

Update Wednesday 8:50 am CT

I gave up, and found it difficult to exit. First I tried to roll up 5 points using the butterfly roll. Then I bid tfor the 10-point condor roll. Then I just exited the trade.

Paid 3.60 for the calls and $0.10 for the puts. I had the 5 cent bid in all morning for those puts, but never did get a fill.

This is a good-sized loss: $1.50 per iron condor and cancels about three weeks work of profits. Nothing to be proud of, but I do believe we can win these trades often enough to make this play viable.

I could enter a new now, but that would be an act of desperation, trying to recover some losses. I’ll stick with the plan and trade again Monday. I’ll take this loss and move on.

At time of trade, RUT was ~812. The reason I allowed it go so far ITM was because I was buy with other Weeklys trades.

18 Responses to “120423 VCTM Iron Condor”

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