Forums - Reverse Iron Condors

HOME FORUMS BROKERS SOFTWARE BOOKS CONTACT US

Your Account • Become a Member • Help • Search

	Forums ›› Main ›› Options ›› Reverse Iron Condors

Page 10 of 16: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

ForexForex

Registered: Jun 2009
Posts: 888

03-10-12 01:54 AM

Quote from jkgraham:

If you sell regular Iron Condors for a 10% gain it would only take 1 loser to equal 9 winners but in practice you shouldn't let it expire with a total loss. You can usually get out of losers with only a 20%-30% loss. I wonder if the Reverse Iron Butterfly would be simialr if you bailed-out of a loser before it expires. Maybe for only a 30% lose or less.

If it's earnings related it would be more like a 70%- 80% loss after the first day if the stock just moves 0-5%.

Edit/Delete • Quote • Complain

spindr0

Registered: Nov 2005
Posts: 4166

03-10-12 03:10 AM

Quote from jkgraham:

OK I see that now. It is a Reverse Iron Butterfly when the options that are bought are both ATM instead of a Reverse Iron Condor. Am I right about that?

How about you try learning to say Long Butterfly and Short Butterfly?

Edit/Delete • Quote • Complain

spindr0

Registered: Nov 2005
Posts: 4166

03-10-12 03:14 AM

Quote from jkgraham:

If it didn't move right after earnings into a profitable range I would close the entire position and take the loss. I would lose a few days of Theta and possibly a lot of Vega if IV drops, but both of those risks are the same risks that Straddles and Strangles face as well.

Not the same risks. IV collapse affects you but you won't lose anywhere near as much vega wiith a spread because to some extent, what you overpay for the long legs, you receive for the sale of the short legs.

Edit/Delete • Quote • Complain

spindr0

Registered: Nov 2005
Posts: 4166

03-10-12 03:17 AM

Quote from ForexForex:

If it's earnings related it would be more like a 70%- 80% loss after the first day if the stock just moves 0-5%.

ONKKKK!!!

Wrong answer.

Do not pass GO.

Do not collect $200.

Go back to Yahoo.

Edit/Delete • Quote • Complain

newwurldmn

Registered: Apr 2011
Posts: 2627

03-10-12 03:32 AM

Quote from ForexForex:

So has it been explained how Convexity fits into this thread? Looks like it doesn't. LOL

If you are buying options you want as much convexity as possible. If you are selling them you want convexity protection.

How would you have your 800% returns that you bragged about if you were trading callspreads instead of outright calls?

Edit/Delete • Quote • Complain

newwurldmn

Registered: Apr 2011
Posts: 2627

03-10-12 03:33 AM

Quote from spindr0:

How about you try learning to say Long Butterfly and Short Butterfly?

I want to trade a reverse short stock.

Edit/Delete • Quote • Complain

Page 10 of 16: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Receive an email whenever a new post is added to this thread by subscribing to it.

Rate This Thread:

Forum Jump:

Conduct Rules - Privacy Policy - Day Trader - Day Trader Forum - Best Trading Software - Sitemap

WHILE YOU'RE HERE, TAKE A MINUTE TO VISIT SOME OF OUR SPONSORS:
Advantage Futures Futures Brokerage & Clearing AMP Global Clearing Futures and FX Trading Bright Trading Professional Equities Trading CTS Futures Trading Software DaytradingBias.com Professional Trading Analytics ECHOtrade Professional Trading Firm	eSignal Trading Software Provider FXCM Forex Trading Services Global Futures Futures, Options & FX Trading Interactive Brokers Pro Gateway to World Markets JC Trading Group Direct Access Trading MB Trading Direct Access Trading	MultiCharts Trading Software Provider NinjaTrader Trading Software Provider OANDA Currency Trading optionshouse Option Trading & Education Rithmic Futures Trade Execution Platform SpeedTrader Direct Access Trading	SpreadProfessor Spread Trading Instruction thinkorswim by TD Ameritrade Direct Access Trading TradersStudio System Building & Backtesting Trading Technologies Trading Software Provider Trend Following Trading Systems Provider