A coupla things. I have a few rules/guidelines when writing iron condors. I usually do indexes, and have to be extra vigilent when writing on single issues. First, I make sure there are no earnings in the month I am writing. Second, I try to avoid strong trending stock. I guess I bent my second rule a bit, and to compensate, I sold my short call strike 10 points higher than one standard deviation. I like writing 75-80% chance of success and I don't like to adjust these things too much. Sometimes adjusting can be a circus act, and I try to avoid it like the plague. I'll post my position here if anyone is interested. On March 16 I sold CME APR 400/390 put vert. @ $1.45 CME APR 470/480 call vert. @ $0.95 I even tried to sell the 480/490 call but the premium was inadequate at that point. I intend to close when each side has less than $.10 or $.15 left or during gamma week, whichever comes first.
CME....... Oh boy, someone kill me now. That's alright, adjustment time. I bot back my IC for a loss, and put on a new APR 440/450p500/510c IC at a 200% greater size. Am i a lunatic?...time will tell
hey vp...I feel your pain cme is a tough one for an IC. I'm trying to close my bull put part of the straddle I bought for Apr (closed the call spread)...you sometimes just want to get out of the way:eek:
:eek: :eek: :eek: :eek: :eek: :eek: Is this thing ever gonna stop going up? I deserve to lose anyway, I breached two of my guidelines. 1. Avoid trending stock 2. wait 24 hours to initiate new spread after short strike is breached. i am praying to the consolidation gods now.
on a flyer like goog or cme you simply sell the way out of the money calls 4-6 weeks out. i solf some may 520's for $8 today. it has to run $48 in 6 weeks to even cause me to lose a cent. i do that with goog all the time works awesome. take advantage of the huge premiums to sell them
Do you spread it, or sell naked? I'm not capitalized enough to naked sell, yet. Sounds like a good strategy.