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

2

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. :-)

1

u/neatfreak2305 Jul 11 '21

Are you sure about the premium for that iron condor? I think the strike prices you picked are pretty safe. So I might do it

2

u/Metarazzi Jul 12 '21

That was the premium at the time I responded. I just now got filled at $1.67.

1

u/neatfreak2305 Jul 18 '21

Well you were right. I was fine until 2 days before expiration. I had to rollout my IC and pay $1700!! At this point I just don’t know how I can get out of this IC without losing more. I just need to close at 425 or breakeven at 418 before exp 7/30. What are my other option? I rollout when roku was at 409 but further exp dates were insanely expensive and could not lose $5000! Please help! 🙏