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5/21/20: Portfolio Analysis - Understanding Extrinsic Value Differences in Iron Condors

From Theory To Practice

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In today’s portfolio analysis, we take a look at our underwater Iron Condor in DIA. And aside from the fact that our Short Call Spread is fully ITM, we see that closing out today would effectively save us about $1.00 off the maximum loss, and these savings are driven by the extrinsic value differences in the shorts and the longs in the strategy.

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