Iron Condor fds

I’m uncertain as to how this position can be profitable if it costs more to exit the trade than to enter it. There seems to be a glitch of some sort in the app? Can anyone explain what’s happening here?


Your link doesn't provide specific information about the components of your Iron Condor so I don't know what the details of your position are.

Every option position has an immediate loss once established because of the bid/ask spread loss. My guess is that is what you are observing. If you want something more than a guess, edit your question and include the prices at which each of the 4 legs of your Iron Condor were filled at as well as the current bid/ask of those legs.

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  • These were the prices I entered the short iron condor at: long call $63 (buy) short call $1.47 (sell) short put $1.05 (sell) long put $47 (buy) I neglected to look at the price of each leg when the condor showed the 1.62 price. Even a guess would be appreciated as to why the overall condor was profitable even though the price showed a loss. I’m guessing it was due to the bid ask spread but I am uncertain. Maybe it was because of implied volatility? Any help would be appreciated. – newtoforex Feb 4 at 21:33
  • Each leg will have a bid/ask spread do it's not surprising that there's a large spread for the overall position. If you look at the bid/ask of each leg that might explain the difference. – D Stanley Feb 4 at 22:01
  • @newtoforex - As stated in my answer, the bid/ask spread puts you in the hole right away (4 legs). If IV moves against you, the hole is deeper. If it moves in your favor, it diminishes the loss. Time decay helps you if short the IC. The answer is there if you drill down into the details. – Bob Baerker Feb 4 at 22:34
  • Thank you @ D Stanley and @ Bob Baerker. Both of these answers helped me a lot. – newtoforex Feb 5 at 1:02

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