ODAX September 2017 Iron Condor adjustment

Summary

The ODAX September 2017 Iron Condor reached today the adjustment point on the Call side (30 delta), as the Dax has climbed more than 300 points since I opened the spread a week ago.

Dax index on 12/07/2017 Source Investing 

This is a pretty bad scenario, with a relative quick movement against you without having consumed much time and without almost any Theta decay.


Trade adjustments

As there is still time value (65 DTE) and some nice resistances to be broken, the plan is:

• Keep the Call side for now
• Close the current Put leg for a profit
• Deploy another Put leg closer with bigger delta

So the final portfolio is this one:

Type	Name	Open Date	Spot	Max Win	P/L
Put Spread	ODAX Sep 2017 11600/11200	28/06/2017	12550	178,50 €	58,50 €
Call Spread	ODAX Sep 2017 13250/13700	28/06/2017	12550	198,50 €	89,00 €
Call Spread	ODAX Sep 2017 13000/13400	6/07/2017	12330	219,50 €
Put Spread	ODAX Sep 2017 11900/11500	13/07/2017	12650	173,50 €

Theoretical max  loss and profit are now:

Max loss: 2000 - (219,50 + 173,5+ 58,5+ 89) = 1459€     (Dax < 11500 or Dax > 13400)
Max profit:          219,50 + 173,5 + 58,5+ 89   = 540,5€   (Dax > 11900 and Dax < 13000)

See also

• 2017 trades (so far)
• Starting to trade the Dax Index options