AUXL – how to take a max loss on an Iron Condor

On 29-Apr-2010 I posted a trade on AUXL CLICK HERE to see it.

Here’s how this trade played out:

The underlying moved sideways which was desirable however, the IV never went down.  In fact, it went up and I was holding the condor waiting for time decay or a IV decrease. I had a very small window of opportunity to take a very small profit, but I held and waited it out. 


The underlying quickly moved lower past my lower breakeven.  I put in an order to take a small loss but it never executed at my price and I refused to pay up too much above theoretical pricing.  This is a MISTAKE when trading less liquid products.

I’m still holding onto the spread.  It’s not worth closing now.  I put in an order to buy back the Call portion for a few cents and will accept the max loss unless there’s an explosive move to the upside. 

Below is the Chart and P&L: (click to enlarge)



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