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.
I WAS WRONG.
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)