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Reply To: ** SPX Iron Condor

Home › Forums › ** SPX Iron Condor › Reply To: ** SPX Iron Condor

December 4, 2014 at 2:20 pm #2114
Steven Place
Keymaster

This is yet another iron condor that's gotten away from me with respect to the upside risk. I'm now going to "lock in" a higher loss to reduce mt directional exposure and increase my theta.

First trade:

1. Buy back the Dec 1700 put @ 0.20 - this is done to free up margin. You don't have to close out the entire put spread, just the short option.

2. Sell to open Dec 2000/1990 put spread for 0.70. This will reduce our odds but help to pay for the call side roll.

3. Buy to close Dec 2070/2080 call spread AND
Sell to open Dec 2090/2100 call spread
Debit: 2.50

Trade part 3 is known as a "condor roll" where we are effectively rolling the spread higher. It will reduce our upside risk, increase our odds, but basically lock in a loss.

spx

There still is a good amount of upside risk, and I'll be trading Jan SPY calls against this trade if I need another sanity hedge.

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