The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer another question which is – “Should you manage an iron condor as two credit spreads?” Again, this question came out of our Facebook community. Somebody asked in there and posted a comment and they said, “Kirk. Assuming you have two credit spreads, do you have an opinion as to if these need to be sold simultaneously or could you try to watch the price a bit and sell the put credit spread and the call credit spread at two different times, hopefully optimizing either entry or exit?” And so, conceptually, I think this makes a lot of sense why you would want to manage a position as two separate spreads. If the market is down potentially and looks like it could be going back up, maybe you sell the put spread and then later, you add the call spread after the markets rally. I think conceptually, it makes a lot of sense why you can do it. I think in reality and in practice, I don't think it’s as eas