If you have been watching my RUT iron condor trade then you know I’m taking some heat, and not the good type. The market is acting like a powerful force to the up-side. Even though we have had some IV crush, the up-side is very strong and is putting some pressure on my iron condor.
When I adjust iron condors I hate rolling my winning side up, mainly because I hate being whipsawed! Instead I like to add to my winning side and in doing so I reduce my deltas and add credit to my position. And so that is what I did today. Currently my probability of the market closing above my short call is 68.3%, which is a very comfortable probability. I have a high tolerance for risk and with this trade as it currently is I have to be patient. Below is the risk profile of the adjusted trade.
Also below is the chart of the RUT, which has proved to be a strong force to the upside breaking through multiple areas of resistance. Even on Friday we saw crazy strength in the market and my assumption was that we would have an in-side day or slightly higher, which we kind of did, but my next major area of resistance is 830, and the 830 area is where I have a short call position. I would love and I also need to have a strong down day followed by some side-ways or inside days so I can move my position around.