How do you handle a sudden increase in volatility (VIX) when trading index credit spread and iron condor options?

If volatility suddenly increases, e.g. caused from a spike in geopolitical tensions in the Ukraine, the value of the credit spread options that we sold would increase in price, thus causing a drawdown in our accounts.  Drawdowns, which are defined as temporary and unrealized losses, happen often with credit spreads.  More importantly, however, is that our sold options (the short calls and short puts) stay out of the money (OTM).  As long as our credit spreads / iron condors stay OTM and then eventually expire/settle OTM , we would keep our premium and the trade would be 100% profitable.  If the underlying index that we are writing credit spreads against starts to move a lot due to the increase in volatility and it causes one of our bull put spreads to get under pressure, we then would adjust the trade before it goes in-the-money (ITM).   We have many case studies in the Monthly Cash Thru Options Learning Center on how we adjust trades that get under pressure.  We always adjust the trades that get under pressure and we never let a trade go ITM.

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