It's time to take the loss in the Oct 650/660; 780/790 October RUT iron condor.
I'll post results as soon as I can. With RUT trading at 670, it's too risky to hold – as an experimental trade with a profit capped near $1.00 per spread.
10 minutes later. I may have panicked, but that's how I survive over the long-term. Paid $4.50 to close. That's a loss of $1.55 and about 25 cents over my maximum loss for this position. The market certainly fell quickly and down 500 down points and 39 RUT points did not help.
If this were NOT an experimental short-term iron condor, I would still be holding. In fact, My 'get out' point would have been when RUT reached 660 (the strike price of my short). But what's done is done and I can easily live to play again as the rest of my portfolio is holding up well (due to owning some extra calls and puts).
The reason I closed: When the profit level is predetermined, and thus, limited (approximately $1.00), then that reduces the amount I'm willing to lose in an attempt to earn that profit. When I can earn more – by holding longer – I can take the chance of losing more money. Risk/reward is an important consideration. I don't have iron clad rules regarding that ratio, but when the gain is limited to one dollar, I'm not willing to risk losing $4 to earn that profit.
Later again. I don't like the loss, but I feel much better being out of this near-term, risky iron condor position.