Did I make the right move?

Shawty_

Junior member
23 1
I had an iron condor on SPY expiring today, 6/21 in the below fashion.

Call Spread - Sell 295 Buy 297
Put Spread - Sell 290 Buy 288

I was doing very well until yesterday, when SPY decided to quickly reverse back up into 296 area at the end of the day.

My thought process: Yesterday was the last day to exercise for dividends. SPY was $1 in the money (not much, considering cost of doing business). Was there profit to be made? Yes. Was I sure it would be exercised? No. Did I want to avoid the risk considering how often options are exercised around dividend outlays? Yes. I closed my spread for a small profit.

Today I wake up. SPY. 293.96.

Did I make the right move by closing the call spread to avoid assignment risk? Do you calculate assignment risk differently, i.e. would you say the option holder would likely not have exercised in that scenario given how low the in the money amount was?
 

ARBinstruktor

Junior member
14 1
If you made a profit, and it was rule based, then you made it right.
And when your rule generates a positive return on average, the your rule is right.
It is that simple.
 

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