{"id":1,"date":"2009-08-28T15:08:55","date_gmt":"2009-08-28T15:08:55","guid":{"rendered":""},"modified":"2010-02-09T01:51:56","modified_gmt":"2010-02-09T01:51:56","slug":"iron-condors","status":"publish","type":"post","link":"http:\/\/dailyma.com\/faq\/iron-condors\/","title":{"rendered":"Iron Condor Question 1"},"content":{"rendered":"

Q: When entering a Iron condor, aren’t you at risk of being put a stock or forced to buy a stock if the underlying breaks your strike. Can this be avoided by simply trading calendar spreads because you are in effect short & long the outer month at the same time. I’m just worried about being put a stock after a huge move and not having the money in the account to do so.<\/strong><\/p>\n

A: Once one side of your Iron Condor is past your break even I would either roll it up or down (adjust) or get out of the trade altogether.<\/p>\n

Whether you get out or adjust is a matter of how you think market will move over the course of your trade.<\/p>\n

You’re not in much danger of those options being exercised UNLESS:<\/p>\n

1) they have less than .25 cents of extrinsic value (EV) left in them and
\n2) the company pays a dividend and the ex-div date is coming soon<\/p>\n

Generally if the option is ‘out-of’ or ‘at-the-money’ it will NOT be exercised because there’s too much time value left in the option.<\/p>\n

If it goes deep ‘in-the-money’ and has less then .25 cents of EV it could be exercised at any time.<\/p>\n","protected":false},"excerpt":{"rendered":"

Q: When entering a Iron condor, aren’t you at risk of being put a stock or forced to buy a stock if the underlying breaks your strike. Can this be avoided by simply trading calendar spreads because you are in effect short & long the outer month at the same time. I’m just worried about … Continue reading “Iron Condor Question 1”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,12],"tags":[],"class_list":["post-1","post","type-post","status-publish","format-standard","hentry","category-iron-condors","category-options"],"_links":{"self":[{"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/posts\/1","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/comments?post=1"}],"version-history":[{"count":0,"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/posts\/1\/revisions"}],"wp:attachment":[{"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/media?parent=1"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/categories?post=1"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/dailyma.com\/faq\/wp-json\/wp\/v2\/tags?post=1"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}