Expecting 100% of your trades to go as planned sets you up for disappointment.
Many Options traders know that so one question that I get asked a lot is, “what do you do when a trade goes bad?”
Asking that question shows that these traders have their expectations in check and understand a plan must be in place to handle the losing trades.
Iron Condor Trade Challenges Us
For this weeks Options Trade Of The Week, I am going to focus on our TGT Iron Condor trade that I posted up a few weeks ago. What was vital for this trade to work was that TGP would stay in a sideways consolidation and any other type of price movement could through a wrench into this trade.
Price did not bend to our will.
Instead of staying sideways like we wanted it to do, TGT has broken much higher which means that our Iron Condor is under water.
We could hit the panic button and get out of the trade but that is the trait of an undisciplined trader. We are going to look at adjusting this trade as we head into the coming trading week.
In addition, you will learn how I will use selling a Call Spread as an adjustment to the TGT trade.
Instead of just jumping out and taking a loss we will take a look at how we can adjust this one going into next week. This new trade is one way we can battle back from the loser much faster.
Learn How I Adjust TGT
In the video below, I will walk through our thought process on selling a Call Spread on TGT as an adjustment to our Iron Condor and also piece it together from start to finish. Next week we will recap our open trades and also look to add a new trade of the week.