when you do that you're essentially trend trading though, calling the bottom when you write the put spread and the top when you write the call spread. you'd also take in less on the call side assuming vol comes in as price comes up to where you want to write the spread. if you're that good at calling tops and bottoms there's much better ways to make money
is there a way to read a top and a bottom? everyone thought that 2640 is the s p bottom yet it broke through it ....
This fellow has been posting for a while with the same type of questions. First I thought he was new etc... Now I'm starting to believe he might be messing with us.
Iron condor is already a hedged position in both directions, up or down. Why would you want to hedge against a hedge? I guess the only way is not trade?
There are technical indicators, previous support/resistance lines, volume indicators that you can use to deduce a possible top or bottom but the best you can do is deduce, they are never 100% accurate. If there is a breakout, all previous resistance/support lines go out of the door and there is really no tops or bottoms until they are re-established and you won't know when. That's why there is premiums for writing those options. That's the compensation for the risk of possible break-out in the future. If there is a way to read a top and bottom, there would be no need for options for hedging purposes.
I would look at selective strikes - not where the market is, b/c it can easily move through the strikes prior to epxiration
i personally wouldnt go to google - but thats just me. Find a good education firm that provides a lot of value