Rolling The Untested Side Of An Iron Condor: How ACondor Defends A Losing Trade
Iron condor traders share a common question once a trade moves against them: how does a trader roll the untested side of an iron condor without adding risk? ACondor, an automated premium-selling platform built for tastytrade accounts, has published a breakdown of the adjustment and how its defense logic applies it. The full explanation is available at https://acondor.com/ blog/how-acondor-defends-options-trades-under-pressure An iron condor has two credit spreads: a put spread below the market and a call spread above it. When the underlying makes a sharp move toward one spread, that spread becomes the tested side. The spread on the far side, now well away from the price, is the untested side. The tested side shows a paper loss. The untested side has usually lost most of its value and is contributing little to the trade. Rolling the untested side means closing that cheap spread and reopening it closer to the current price, in the same expiration. Because the new strikes are nearer the m...