Exiting a Short Iron Condor - a Word of Advice for a Noob?
How are you guys, I hope everyone is keeping safe here.
Have a novice question here. My short IC is about 1.5 STDEVs OTM on both wings. One wing went into good profit and the other understandably got a bit more expensive. Overall the position is still profitable, but not by a lot yet. RSI/Stoch suggest a reversal. IV percentile is quite high and trending down.
So the question is - should I use the opportunity now to sell the profitable wing to lock in at least some profit, turn the IC into a vertical spread and then work with the time decay, IV drop and time a reversal to close it? Or is it not recommended?
What would the gurus do?
Many thanks!!!
Have a novice question here. My short IC is about 1.5 STDEVs OTM on both wings. One wing went into good profit and the other understandably got a bit more expensive. Overall the position is still profitable, but not by a lot yet. RSI/Stoch suggest a reversal. IV percentile is quite high and trending down.
So the question is - should I use the opportunity now to sell the profitable wing to lock in at least some profit, turn the IC into a vertical spread and then work with the time decay, IV drop and time a reversal to close it? Or is it not recommended?
What would the gurus do?
Many thanks!!!