Tuesday March 9, 2010

Today I have decided to be a bit more conservative with my iron condors.  With the SPY approaching yearly highs I have decided the calls need to be higher, further OTM.  This will mean less premium, but perhaps a bit more protection.  However, should the trade need adjusting, I feel confident about the moves to make.  So with that I am moving the calls to 117/119 and the puts down to 108/106.  Routed and filled for a 74 cent credit.

The DIA calls will be the same 108/110 but I am bringing the puts up to 101/99.  Routed and filled for a 76 cent credit.

Since neither iron condor was filled yesterday, I decided to re-evaluate and re-route.  This is planning my trade and trading my plan.  I like these new trades.  I received a little less premium but have more room for the market to rally.

Going forward, I will monitor the markets a couple of times intraday.  The only concern I would be if the markets were to rally significantly.  A big drop does not hurt my iron condors, but the IWM double calendar most likely would need an adjustment.   After the close, I will look at the overall and individual risk graphs.  Going forward there will not be much to do but wait.