I agree. It was late and I should have given that more thought/detail. My apologies. As for the spreads, you're right re: SPX. Again, I was speaking in more general terms as to one method to reduce risk. Most of us know all too well what it's like to get into a trade with the best of intentions, thinking our risk level is acceptable. Then we realize how badly things could really go - and what the consequences COULD be - and fear and panic sets in. I have found that closing even a tiny bit of my position greatly reduces the stress and makes it much easier to further reduce until the pain goes away. Closing out even a fraction of the position relieves stress ("Gee...that wasn't so bad...let's do a bit more") and clears/focuses the mind. Of all years, this past year has shown us how quickly and ugly things can become. In the case of an iron condor, your risk is limited and known before putting the trade on. Thus, you have certainty re: your worst case scenario - a very nice thing to have. In the case of the OP it's really just a matter of him not thinking things through before opening the position since the possible outcomes were fully known. The open-ended risks are the true beasts.
Sometimes to get better fills on SPX IC you can leg into it. Do a call order and then a put order to leg into it. I usually go .05c below mid prices and get fills within a few minutes. Also if you are trading 10pt wide on SPX, try out RUT, there are more markets that RUT is traded on (SPX only traded at CBOE) and you can get better fills with RUT or MNX. Also watch what days you are trying to get into your IC. If you are trying to get into your IC on the Monday after expiration for the next month, just like everyone else is, then you can get bad fills and lower credits. Try doing it a few days after or before the rush and you will get better fills and prices (usually that i have found).
Thanks svg. By the way, welcome to the options board. I'm looking forward to your insights. Mike-- I totally agree with your post on fills, and take the similar approach. When I really want a fill during an adjustment, I offer 0.10 off the mid on a spread (0.15 for butterflies) and it usually happens in the next few seconds. When I'm feeling very comfortable with my current position and like the price structure that is shaping up, I go right at the mid and let it sit for a bit. Often it fills, but occasionally it expires. In that case, it is not big deal. The business with the Monday after expiry is no doubt likely. It would be interesting to do a little study comparing the Monday after with the Wednesday or Thursday following and see what the price differential is for IC writers. Has anyone done this? I'd be interested in their results. I'm guessing it probably is 10-20% better later in that week.