Patience proved to be smart this week as my DIA & SPY iron condors went ITM on the call side. With the VIX nearing 3 year lows, option premiums are sparse. March 17 & 18th I looked into adjusting both those positions. There was just not a trade out there that I liked. There is no premium to sell and I would have only been able to sell calls $1 higher than where my shorts are now. So with the markets extended, and the weekend approaching, I decided to wait. Today’s sell-off is just what my overall position needed as price slid a bit closer to the center of my risk graph. Pictured below is my DIA iron condor as of the close today.

There is a very high probability that this trade will need an adjustment but for now it does not look too bad.

There is a very high probability that this trade will need an adjustment but for now it does not look too bad.

The next picture is my overall position as of the close today:

These trades have all been open for nearly 2 weeks. Notice how the white line is starting to rise. As time marches on and implied volatility shrinks, my position is becoming profitable. The DIA is the product highlighted on this risk graph, but it is the same for the other products as well. Just the price on the bottom horizontal axis would change as I enter a new symbol. The Diamonds closed today at $107.34 and my short call is $108. A 2-3 point sell-off would put me exactly where I want to be in the profit picture. Time will tell, there are 28 days until April expiration.

Monday, the EEM will have May options available to trade. I will start looking at double calendars in that product and will hopefully find a trade I like early in the week. It will be interesting to see how a 4th trade will impact the risk graph. If I place a trade which fills, I will post a before & after risk graph in my journal.