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.
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.