I enter a Iron condor trade on TSLA expiring 5 June 2020. Call side is 890 and 895 Put side is 730 and 725 unfortunatly, the market against and went past 890. I then bought back the Put side and my new Put side is 855 and 850. If the market stays above 890, what happens?
Short answer: you'll lose money. Longer answer: how much you're going to lose depends on how far above 890 it is at expiration, and whether you'll let your trade expire or close it before that point, and whether you get the stock called away from you (possibly even before expiration.) Note that the latter can happen after the market closes - meaning that you'll no longer have the option of exercising your long call, and will take the loss (spot-strike*100, less credit) outright.
TSLA closed at 881 this afternoon so you're still 9 points OTM. If the market goes against you tomorrow morning and your Call spread goes ITM at a price of 890 or more you could consider rolling the Call. If your short side expires ITM (i.e. 890+) then, per the OCC's rules the "..ITM options will be exercised/assigned at expiration." If that is not the desired outcome, then you should close or roll the position. Otherwise you might find yourself being assigned $88,000+/- worth of TSLA stock.
I repaired the non-broken side, i.e. the PUT side. Rational was if i were to repair the broken side, i would run a loss. I do know there are traders who repair the broken side. Would that be a better repair alternative?
I bought a call at 895, wouldn't that reduce the money i would have to spend when when my 890 call becomes ITM? This is of course assuming TSLA goes past 895.
If you are short the TSLA call spread, and the underlying is between the strikes on expiration, you would be assigned on the short calls and the long calls would expire OTM on expiration and therefore expire worthless. That means on Monday you would see that you are SHORT 100 shares of TSLA stock. At least that's what I think the OCC is saying. Makes a good case for knowing what you're trading and all the scenarios that can happen. Best