Multi-leg strategies
How do I manage an Iron Condor when one directional side is severely tested?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
When one side of an Iron Condor is tested, traders commonly roll the untested side closer to collect additional credit, roll the tested side further out, or close the position to cap loss.
How it works
Management decisions weigh remaining time value, updated delta exposure, and whether the breach reflects a temporary move or a fundamental shift, since adjustments change risk rather than eliminate it.
An example
If the short call at 110 is tested by a rally to 108, a trader might roll the put spread up for extra credit or roll the call spread out in time to reduce delta exposure.
Risk & limitations
Rolling can extend losing trades and increase cumulative risk; adjustments do not guarantee recovery and may convert a defined loss into a larger one if the trend continues.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.