Condor Options

Given the strength and breadth of this morning’s rally, members who are long the SPY Jul/Aug 129/135 strangle hedge position from yesterday might consider closing just the put side, as follows::

Day limit order
Sell to close 4 SPY Jul 129 puts
for a net credit of about $0.09.

Note that the 4 contracts above represent the entire position taken in the long July 129 puts. The idea here is to hang onto the 135 calls to hedge against further upside movement. Also note, however, that the entry trade was not autotraded, and therefore this adjustment order will not be autotraded. And naturally, anyone who didn’t buy the strangle yesterday should ignore this update.

Note that I’m showing the projected P/L at expiration this time because one possible way to minimize this month’s loss, and perhaps even turn a profit, would be to set up positions that we could let expire and then sell the August legs Monday morning. This scenario would certainly require an adjustment to our current portfolio, but exactly what adjustment(s) will be determined by where the market heads today and tomorrow.