SPX has rallied hard and looks ready to break above the 2000’s again.
If I had done a normal iron condor I would be in a lot of pain, but because I recognized that the upside risk is the biggest risk, I’m still sitting right around breakeven.
The call spread (2040/2050) does look a little tenuous here, so what we are going to do is ROLL and ADD to our call spreads.
Do note that this does NOT change any of the margin characteristics of the trade. We are just adding a little more upside risk in exchange for widening out our breakeven and getting better odds.
Here’s the trade:
Buy to close SPX Dec 2040/2050 call spreads at 2.80
Sell to open FULL SIZE Dec 2070/2080 call spreads at 1.50
This keeps us around the same directional exposure but it doubles our theta.
The upside risk still is the biggest risk here. If I need to make another adjustment, I will roll the put spread higher for a credit and use that cash to buy some hedges.