Condors on the RUT

For the past few months I have been trading relatively conservative iron condors on the RUT. My net, monthly gains have ranged from 19% - 36%. I'm charting a definite up-trend on the RUT and predict this should continue. Anyone else seeing small cap gains in the near future?? I'd like to go ahead and buy and sell an aggressive put spread for July.

 

You call 19-36 monthly gains conservative?
What is your definition of home run?

 

Come on IV this is the internet everyone makes that all the time, you know that.

My only question is why would you need to ask total strangers their opinion if you're making that much?

 

He probably wants to hit a ‘moderate” 60-80% return

 

You don't want to get yourself in a rut trading iron condors all the time. I would try other approaches.

Home Run
n. Baseball. (Abbr. HR)

A hit that allows the batter to make a complete circuit of the diamond and score a run.

 

That percentage quoted is likely against margin, not total account.

 

"Buy and sell"? Is this a credit spread or a debit spread? It makes a big difference.

Sounds like you expect the market to keep going up, so it would be a credit spread. I prefer not to open put credit spreads in an overbought market like this. I'd wait for a pullback, then do it when the market is showing signs of being oversold. It's safer and the market is more likely to move in your direction sooner.

 

first of all; if you are netting that percentage monthly, you will blow through a spread soon enough. either your account will get blown out, or it will take months to get back and if you are aggressive again, it will happen all over again.

when i do "condors"; i sell only when i have determined we have very clear oversold and overbought conditions. there will be times with no puts or calls as conditions will not allow. my disipline is very good. if i did not build a fly out of a credit spread; i will close out once most juice is gone. it takes years to get the right feel.

 

My shorts are 800 and 630 for a 25% Return in 66 days.

Looking good so far. My current delta is -15.93.

The attached is just once Condor as a reference.

 

all this has been discussed Ad nauseam ; achieving those returns are unsustainable. when you learn that ; i hope you don't say, "it can work next time by doing this". the real way you can stay alive and make a living doing this will be building positions like fly's, ratio's; taking small profits, etc..
set it and forget it will work for a few months, then "see ya!"
also if you think by july we will not touch 800 or 630; i have a bridge to sell you.