I've opened two positions for discussion purposes only.The first is an experimental iron condor. The idea was to hold for two weeks (that's tomorrow) or perhaps a day or two longer; take a quick profit near 15% of the margin requirement, and close the position to eliminate all remaining risk.
The second is a longer-term (12 week) iron condor. This position has been held for four weeks.
October iron condor:
RUT was 723. Sold the Oct 650/660 put; 780/790 iron condor @ $2.95. Goal: Cover by paying $1.90, on 9/26/2008
Today RUT is 707 (11:15 AM CDT). With IV much higher now (RVX = 37), this iron condor is priced much higher than I had hoped. The mid-point between the bid and ask is currently $2.85. The passage of time has helped, but the premium is too high. Decision: Hold. I could take a tiny profit to eliminate risk, but with both short options being 60 points out of the money, I believe this position is worth holding. But, I will be checking every day for an opportunity to exit the trade.
November iron condor:
RUT was 738. Bought
RUT Nov 620/630; 810/820 iron condor @ $3.15 credit.
With RUT near 707, the mid-point between the bid and ask is currently $2.75. Decision: Hold.