Condor Options

As of 11:13am (Eastern), KO is trading under $55, failing to confirm yesterday’s close above our $55.20 adjustment threshold. Nevertheless, as some of you no doubt have noticed, our long May options have decayed to about half their original value, reducing the current dollar allocation of both April/May Supplemental Trade positions to about what we originally allocated to a single position. This leaves us enough cash for as many as two more entry trades for the April cycle.

As long as the stock is trending lower intraday, we don’t want to compromise the downside profit potential of our current position. However, if buyers step in with conviction and drive KO back up to the $55.20 range, we can use that as an opportunity to add another position and offset our delta bias.

So no adjustment for now, but we still might open a new Supplemental Trade position before the week is out.