From Theory To Practice - July 16, 2021 - Closing Out ITM Iron Condors on Expiration Day

published 1 week ago by tastytrade, Inc.

When you have an ITM Iron Condor on expiration day, you'll have to close out of the position at a max loss. The first thing to realize is that you only need to close out the tested side, as the untested side will expire worthless in a couple of hours, so there's no need to do anything with that side. But second, it's not uncommon to have to pay a penny or two over the theoretical max loss, in order to get filled on your closing trade.With our TGT Iron Condor that expires today, we see both of these points in play.

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