ROLLING IUX/RUT APRIL 15TH 1075/1085/1105/1120 IC

... to April 15th 1060/1080/1110/1135 iron condor.

The short put side and short call sides were rolled separately: the put side for a .48 credit and the call side for a .59 credit.

Notes: I widened the spreads on both sides here (rolling the short call up and the short put down) to increase the probability that I will be able to exit either one or both sides at or near max profit some time prior to expiration. A word of caution is in order: widening the spread increases the profit potential of the spread, but it also increases max loss. As a general matter, I only use widening as a last resort in rolling where I simply cannot get enough credit from the sale of an oppositional side to offset the roll of the tested side adequately. Here, I'm doing it largely for practical reasons: first, I want to insure that at least one side is not "too close for comfort" such that I have to roll both sides out (i.e., I want to be able to close at least one side for near max profit); second, I may not be able to watch the setup attentively next week to be able to take advantage of a short-term move ... .
Comment: As a side note, the cost of the short put side is currently $228, the short call side, $719. So the preference would naturally be able to close that juicy short call side for at or near max profit. However, with price dancing $6 below that strike, I'm not sure that's going to happen by expiration ... . Hope springs eternal, which is why I set up GTC orders to close either side for a $20 debit.
Comment: Bought to cover 1110/1135 short call vertical side of this setup for $131 debit. The side was worth a $719 credit, so $719-$131=$588/contract profit. Still watching the short put side with a few days left until expiry ... .
Comment: I ordinarily don't like to wait until the last minute with making a roll decision. However, since this is the only setup I have in this week's expiration, I figured I'd wait until the last minute, particularly since IUX/RUT has been staying clear of that 1080 strike for several days.
Comment: That was quick ... . Out of the short put side at around 50% max for that side -- a $108 debit. It was worth a $228 credit, so that's $120/contract profit on that side (minus fees and commissions). Thank you, gamma ... .
Comment: As a final note: I would note that closing this setup out for a $700/contract profit or so isn't as "sexy" as it looks, since it was not an "original" setup. It involved a couple of rolls that I got credits for, but when you roll an underwater side, you realize a loss for that, so it's important to paw through your trade chain from beginning to end, making sure that you're exiting profitably or at least for less of a loss than you would have experienced were to have just shut the whole thing down ... . Otherwise, you may be exiting the current setup profitably but not net profitable for the original setup plus any rolls you've done ... . In this particular case (and without posting the entire, drawn out trade chain), I netted something in excess of what my profit target for the original setup was, which was far less "sexy" ... .
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out