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Position's History:
07/27 RUT 30-Day Iron Condor
07/23 RUT 30-Day Iron Condor
7/22 RUT 30-Day Iron Condor
7/21 RUT 30-Day Condor *New*
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Blog dedicated to ETF and Index option trading strategies using credit spread and money management.
2 comments:
Gustavo, how does an increase in volatility help your iron condor's P&L? ICs normally have negative vega. I guess all of the positive vega in your 600C and 620C is the reason, correct?
Correct, when I started the trade I had 1 extra long PUT and CALL, those serve as insurance against an large price swing they increase the vega, however, at this point, the position is still vega negative.
Once I hit the 550 price zone, I added the SEP 620 CALL. This further increased the vega, now the position (at these levels) is vega positive.
See the "Live" line on the profile chart, you'll notice that the vega is positive, so if the volatility increases, it helps the position.
Hope that helps.
Gustavo
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