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Iron condor on RUT has been one of my most successful income trading strategy. I have been generating consistent double digit returns for past 11months on this profitably.
So here we go, here is my 1st or maybe 2nd loss on RUT Iron condor in 12months time. No excuses but my travel hurt this one (as I had feared when I discontinued the OPN due to my busy schedule). As you would notice from the chart that RUT has been falling from cliff and I know 775-780 offers a very real support point (also my BPS leg of the IC 780/770), I would like to close it vs making adjustments.
So here is how it started- Opened 910/920 and 780/770 call for $1.90 credit. RUT dropped and I bot my $910/$920 BCS for $0.20 and opened $890/$900 BCS for $0.80 credit. RUT further dropped and I bot $890/$900 for $0.20. Thus my credit increased from $1.90 to $2.30. But in past few days RUT fell rapidly and I had no chance to adjust or close due to travel, thus today 780/770 I bot back for $3.50. Net loss on this RUT iron condor is $1.20 on $7.70 margin i.e. 15.6% loss. I chose to close it vs adjusting as I would like to use this freed-up capital for some other great opportunities.
One key take away though- when on travel, better cash out and get back to the business when back or use conditional orders to trigger your orders. I knew this but I took it lightly as I thought I maybe able to access net from some locations 🙂 Part-n-parcel of business.
Cheers and profitable trading, OP
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