For the time decay, which I felt should have been a little faster during the first 7 or 8 days. My gut feeling is that the DIA will end up higher than 137 by expiry. I think I will, but I suspect that the DIA will end up higher than 137.
yes there is a very good chance. for me according to the software 56.8% chance of expiring IN the strikes to be exact.
I know that the trade is set up to collect time decay. My point was that you unecessarily skew the results against you by getting out the instant the trade goes into positive.
From my previous post ..... "My gut feeling is that the DIA will end up higher than 137 by expiry". --------------------- I just liquidated the call side as DIA hit 136. If DIA stays above 126 by expiration then total loss will be about $25.00, haven't done the exact math yet. Sold 137 Dec 07 Calls @ $1.58 to close. Bought 136 Dec 07 Calls @ $2.17 to close.
I'm actually thinking about doing the same. buying the call vertical back. But im going to wait a little longer.
UPDATE - DIA 125/126 and 136/137 Iron Condor I still have the put credit spread (125/126) of what was an Iron Condor. DIA must close above 126 at expiration (November 23) or the present $25.00 loss will increase. DIA 3 month chart - December 13, 2007 Green dot = November 20 open Iron Condor (125/126 and 136/137). Red dot = December 06 liquidated the Calls, Puts still open.