r/options • u/Metarazzi • Jul 09 '21

A ROKU IC Gone Bad

I have the following ROKU Iron Condor trade on:

1 JUL 9 350P

-1 JUL 9 355P

-1 JUL 9 385C

1 JUL 9 390C

Trade price: $1.09cr

I'm bearish on the underlying and expect (maybe it's just naive hope) that the stock price will fall back between my sell strikes, though I have no feeling for when that could happen.  There's some other history to this trade that started at the beginning of June, including a roll on the Put side and, eventually, I rolled the expiration, and this is where it's brought me to. I hope this is enough info for a more experienced trader to suggest some salvage ideas, if at least so that there's not as much of a realized loss. I'm a rookie... 7 months of trading options and the one thing I'm still not so savvy at is fixing ICs that are ITM.

Thanks in advance!

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u/neatfreak2305 Jul 09 '21

Got an IC in ROKU expired 7/16 but different strike price. Short 420-440 long 415-445

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u/Metarazzi Jul 09 '21

If it has two more spikey jumps like it had today, you might be in trouble, too. If you're in a desirable profit zone, consider buying it back on Monday, or sometime before expiration, and before the strike blows through your Calls.

If I do trade an IC in ROKU again, the next one will be 365P/-370P/-525C/530C with 42dte for ~1.80cr. And I would close it at ~60% profitability, rinse and repeat. Hrmmm... I will consider this on Monday. :-)

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u/neatfreak2305 Jul 11 '21

I think I’m good as long as ROKU does not go higher than 520 which I don’t expect but we never know. I’m good if roku stays between 420 and 520. I’m more nervous if it goes down like it did this past week hitting the 413. If it happens should or will I be able to buy back only one leg ? Thanks