Iron Condor Option Trading Basics

[TraderInterviews]

Just did a webinar last night with the guys at Learning Markets about trading iron condor option strategies.

I tried embedding it here but no luck so here's the link:
http://www.learningmarkets.com/Options/2010020112061/special-event-trading-iron-condors.html

 

[gooseman]

what was the outcome and why isn't everyone doing it?

 

[Pitscum]

...cos they only work when volatility in the underlying has petered out. the minute the market moves, your butty gets battered...

therefore,it is not a market neutral strategy like the bloke states. mind you, the bloke is a smooth talking merrycan with text book schpeel........steer clear...

 

[luckyd1976]

IC's are good addition to a portfolio and anyone can learn them for free online. If the delta's are far enough out and you dont get to greedy, it's a good strategy. People get too close to ITM... Easily 70-85% win rates with proper distances.

Money Management keeps you alive/ Volitility or not...

L-Call
S-Call
$Price$
S-Put
L-Put

All for a net credit

IC basics lol

 

[Pitscum]

IC's are good addition to a portfolio and anyone can learn them for free online. If the delta's are far enough out and you dont get to greedy, it's a good strategy. People get too close to ITM... Easily 70-85% win rates with proper distances.

Money Management keeps you alive/ Volitility or not...

L-Call
S-Call
$Price$
S-Put
L-Put

All for a net credit

IC basics lol

i completely agree, they will be making you lots of money at the moment, especially with the state of the greek economy...................any more tips for us regarding selling the teenies???

 

[gooseman]

VaR

 

[A Dashing Blade]

Used to call them "Rio Spreads" in my broking days ie the Salesman makes enough commission to go to Rio for the weekend

 

[gooseman]

how's it looking today? and how was it last night?

 

[luckyd1976]

how's it looking today? and how was it last night?

Still great on my SPY. I was far enough away. Deltas are a climbing so yes Im losing some money but the spike down didnt touch my IC's.

 

[gooseman]

unless you're premium taken in was about 3 ticks there is no way in this world you weren't offisde marked to market. if you're trading iron condors for penauts then one thing's going to happen.

 

[luckyd1976]

unless you're premium taken in was about 3 ticks there is no way in this world you weren't offisde marked to market. if you're trading iron condors for penauts then one thing's going to happen.

Please elaborate. Offside meaning losses on M2M? Peanuts, only one thing is going to happen???

 

[daveyc]

hello guys, i'm a struggling options trader but i'd like to know what your opinions are of adding calendar spreads to reduce the vega in the iron condor position?

 

[GTS]

It's not a bad call. Mostly when the market is topy, it will be a waste of opportunity if done at a low, most likely.

 

[cameadows]

They aren't quite "rio spreads" anymore. The spread between the bid and the ask on ETF's are so slim, nobody is really making big money. I have profited from Iron Condors over the years and have worked to hedge them with Calendar Spreads to protect against moves that hurt my iron condors.

 

[HowardCohodas]

Just did a webinar last night with the guys at Learning Markets about trading iron condor option strategies.

I tried embedding it here but no luck so here's the link:
http://www.learningmarkets.com/Options/2010020112061/special-event-trading-iron-condors.html

I prefer to view Iron Condors as two credit spreads rather than a short and a long strangle. I find the concepts easier to teach students who are not very familiarly with options. Furthermore, thinking of them as separate credit spreads means that you can enter them based on the risk/reward evaluation separately as well. Credit spreads are my goal. Iron Condors are a bonus if the markets permit.

He seems knowledgeable, but I find his advice on managing an Iron Condor confusing for someone not very familiar with options.

The video was free, so too much criticism is probably unwarranted.

 

[GTS]

credit spread traders are like pilots, their real value comes to light during crisis.

 

[HowardCohodas]

credit spread traders are like pilots, their real value comes to light during crisis.

Thanks. Gives me a chance for more quotes.

A superior pilot is a pilot using his superior mind to avoid to have to use his superior skills.

Don't fly as if you own the sky, fly as if you own the airplane !

A "good" landing is one which you can walk away from. A great landing is one which lets you use the airplane another time.

The three most common expressions (or famous last words) in aviation are:
"Why is it doing that?"
"Where are we?"
"Oh ****!"