Iron Condors and Stupidity

Discussion in 'Options' started by jwcapital, Mar 14, 2009.

  1. Interesting discussion. I find that symmetrical condors are the least profitable. I trade call/put IV adjusted condors with the 1/2 width of long wings vs short wings. My usual credit (depending on IV on S&P) is around 8 points on ES. I do the adjustments of the guts and leave the wings untouched. I have been running this strategy for 10 + years with constant success. In 2008 we made good money as well. It's just the matter of understanding of this construct and having a good plan to maintain it.
     
    #41     Mar 17, 2009
  2. Translate, please

    Mark
     
    #42     Mar 17, 2009
  3. number of points between current price level and the short put strike vs number of points between the short put strike and the long put strike. The same for calls
     
    #43     Mar 17, 2009
  4. EX: rut index short= apr 370 put=imp,vol=50%
    long=apr 320 put=imp,vol=55%

    buying high and sell low
     
    #44     Mar 17, 2009

  5. You believe that's why 90% of iron condor traders lose money? Because they pay a higher IV for the puts they buy than the puts they sell?

    Are you serious?

    I don't mind paying that higher IV because I trade dollars, not IV chips. I buy lower priced options and sell higher priced options. Goal: lose IV chips, gain dollar chips.

    Mark
     
    #45     Mar 17, 2009
  6. does Anthony give any reason for calling it "long"??
     
    #46     Mar 17, 2009
  7. diagonal's are different animals since you have chosen to risk more near term...so not sure you can ever say I have "bought" or "sold" a diagonal.
     
    #47     Mar 17, 2009
  8. when you say you adjust the "guts" then you are buying back your shorts??? and re -selling them? tia
     
    #48     Mar 17, 2009
  9. ok..my vote is simplicity...we are short or sold because we collected cash..don't care about how equilivant it is.
     
    #49     Mar 17, 2009
  10. operating word is "guts". I knew I was not alone.... there are maestro's outthere.
     
    #50     Mar 17, 2009