Here we are in the midst of a huge rally, and I'm not happy with my iron condor positions.
Playing conservatively, I've already closed 1/3 of my RUT 460/470 call spreads.
I own extra calls, but they are not enough to offset pending risk, and market volatility. As my account is losing value, I'm rolling some short call spreads to higher strikes. Moved the RUT May 460/470 spread to 520/530 and moved some Jun 460/470 spreads to 530/540.
I did not sell extra call spreads. Not happy, but I must do what I must do and my comfort zone had definitely been violated. Feel better now.
I just don't understand this whole process. The banks – which would be officially insolvent if they had to mark their toxic assets to the current market – have been given a reprieve by the FASB (Financial Accounting Standards Board). But, IMHO, they are still insolvent. So why the rally? These banks are not going to begin lending money to each other – because they know each other bank is also insolvent. So how does this MTM rules change help anyone? And nothing has been done to encourage banks to begin lending again.
Naive me thought that the whole idea to salvage our economy was to encourage banks to lend to small business and individuals. I guess the idea was really to do anything to prevent the banks from doing what you and I and each trader must do – and that's recognize the true value of our positions on a daily basis.