Sold RUT Mar 330/320 @ .70 This opens the second leg of my March Condor on the RUT.
This trade, along with the matching trade on 1/28, demonstrates why I like legging into the condor. In this case I was able to make my short strikes $20 wider than if I had put both sides on at the same time (at least on 1/28).
That being said, there is a trade-off here. The market reversed on 1/28, but it could have just as well gone the other way. If that would have happened things wouldn't have worked out so well. If you are uncomfortable with your technical analysis there is nothing wrong with putting it all on at once. Your risk profile is a little narrower, but at least it doesn't get any worse either.
Further, I also have to think about the impact of being wrong. What the picture above doesn't show is that the market headed lower after this trade, and it could still go much lower. I still have my management rules in place and am prepared if it goes a lot lower, but I like this approach as it gives me the most room.
Good Trading...
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