Iron Condor in option trading involves Call credit spread and put credit spread.
After entering the position the index moves in one direction and either callside or put side will be in trouble.
In such case any of the side may go into deep trouble. If I wait till expiry I may end up incurring max-loss in the position. Whether I have to book loss before expiry or try to roll up (if possible). If so precisely when?
Whether I have to monitor my loss on my total position or the troubled sideonly (call or putside-here net position may still under profit when we take position of call spread and put spread together). I am confused. Veterans please help me clearing my doubts.
eXAMPLE:
16/9/16 23/9/16
8400 P S 42.00 21.20
8200 P B 23.50 11.00
18.50 -10.20 8.30 44.86486486
9200 C S 32.00 39.60
9400 C B 11.00 12.25
21.00 -27.35 -6.35 -30.23809524
14.62676963
On 16/9/16 I entered the iron condor position as above. On 23rd my position-profit of 44.86% on put side, loss of 30% on call side, but net 14.6% profit.
Here what I should do? Should I consider total net position, or call side only position? Please clarify.
After entering the position the index moves in one direction and either callside or put side will be in trouble.
In such case any of the side may go into deep trouble. If I wait till expiry I may end up incurring max-loss in the position. Whether I have to book loss before expiry or try to roll up (if possible). If so precisely when?
Whether I have to monitor my loss on my total position or the troubled sideonly (call or putside-here net position may still under profit when we take position of call spread and put spread together). I am confused. Veterans please help me clearing my doubts.
eXAMPLE:
16/9/16 23/9/16
8400 P S 42.00 21.20
8200 P B 23.50 11.00
18.50 -10.20 8.30 44.86486486
9200 C S 32.00 39.60
9400 C B 11.00 12.25
21.00 -27.35 -6.35 -30.23809524
14.62676963
On 16/9/16 I entered the iron condor position as above. On 23rd my position-profit of 44.86% on put side, loss of 30% on call side, but net 14.6% profit.
Here what I should do? Should I consider total net position, or call side only position? Please clarify.
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