Dear fellow options traders,
On 19/4/13, I bought 8 contracts of IWM Double Calendar. Capital outlay = $1,432. Possible credit = $1,111.
The stock market kept moving up in a bullish trend. I have adjusted the double calendar position once.
However, the price surpassed my determined maximum pain point and I was hoping the price would retreat. It didn't.
*** You can subscribe to the free newsletter in the above link to understand how to determine your maximum pain point level - the price level that you really need to consider adjusting your iron condor position.
Thus, I decided to close the original plus the adjusted IWM Double Calendar positions on 15/5/13. This incurred a loss of $1256 plus commissions of $112.
If I had held on my position till the option expiration on 17/5/13, I would have lost more because IWM has reached a new high of 98.99.
Yours Truly,
Tony Chai
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