Iron condor, price spikes before entry, does it matter?

#1

Say I’m trying to set up an iron condor, and the floor and ceiling of the spreads meet at 100.25 on our imaginary instrument. Before I can get my entries the price drops to 99.95, or 30 ticks. Should I recalculate, adjust my stops? Would it be best to find a different setup?

More simply, I’m wondering whether a spike in the price could invalidate the numbers shown in the condor calculator.

-Ty

#2

Your risk, profit and loss will depend on where you actually enter a trade so your stops need to reflect that. If the prices move on you like that, adjust the numbers in the calculator and see it is still a worthwhile trade.

#3

Yes, you would definitely want to re calculate and see if still a good ratio, not just jump in blindy anyways after a move like that