Home › Forums › Income Lab › SPX 4 AUG Iron Condor (570) › Reply To: SPX 4 AUG Iron Condor (570)
There is no ‘right’ or ‘wrong’ here. If someone chose to take a smaller credit to enter this trade, it’s fine but they need to be aware that there’s less credit available to make any adjustments. Remember, when we put this trade, we assume we’re going to spend some of that credit to defend this trade and still try to make 8-10% on risk. IF I absolutely had to put something on, because my shareholders weren’t happy about sitting out, I’d probably move closer to ATM on short strikes and take in more credit instead of taking a smaller credit for a little bit wider strikes. As far as earning a week’s worth of decay goes, trades that are 60 days out are more sensitive to IV changes and Theta gains often get replaced with Vega losses. In my experience, I choose strikes and price I’m willing to play and if I can’t get action then I’ll re-adjust strikes according to where SPX is and wait for my price to enter.