Condor Options

Anytime the market becomes volatile enough to trigger multiple adjustments, it’s a good idea to adjust our expectations as well, to reflect the increased risk. Our open May position is currently trading at a gain of about 17%, and there appears to be no practical option for an upside adjustment at this point. Therefore, we’re going to book our profit on this position and wait for the opportunity to start entering June trades.

Closing this position is going to take two orders:

Order #1
Day limit order
Buy to close 2 SPY May 116 calls
Sell to close 2 SPY June 116 calls
for a net credit of $1.54 or better.

Note that the 2 contracts specified above represent half the number of contracts in our original position, and all of our current position at 116.

Order #2
Day limit order
Buy to close 1 SPY May 108 call
Sell to close 1 SPY June 108 call
Buy to close 1 SPY May 120 call
Sell to close 1 SPY June 120 call
for a net credit of $2.04 or better.

Note that 1 contract is one-fourth the number in our original position, and our entire current position in the 108/120 double-calendar.