LinkedIn Iron Condor Gone bad.

Discussion in 'Options' started by skvaith, Feb 5, 2016.

  1. OptionGuru

    OptionGuru


    I used italic's around stopped out to indicate the OP can consider the trade to be stopped out at maximum loss.


    :)
     
    #11     Feb 6, 2016
  2. skvaith

    skvaith

    What does Stopped out means? I have been following this for about 2 years and never heard this Term.
     
    #12     Feb 6, 2016
  3. It means getting out of the trade and cutting your losses. No disrespect intended but are you really saying that your are trading iron condors but don't know what a stop out is?
     
    #13     Feb 6, 2016
  4. skvaith

    skvaith

    None Taken. But I have not used that term. I am not an expert and I am learning. Yes. I am trading Iron condors and this might be my first messy adjustment.

    Are you saying that there is no way out....I don't mind the loss and am prepared for it. But what would an expert do....
     
    #14     Feb 6, 2016
  5. K-Pia

    K-Pia

    It's always funny to see overwhelmed people that got caught by the tail. I mean ... Even if your strategy has a 95% chance of success, please, don't overlook those 5%... Yeah, Speculators are Risk taker. Not Gain taker ... So first know your Risk. Cause it's what you're dealing with.
     
    Last edited: Feb 6, 2016
    #15     Feb 6, 2016
  6. Your out is going to be dependent on the underlying stock price, I don't believe anything can be done to "help" your losses unless the underlying rallies hard. I'm not an options expert but my understanding is that iron condors are built so max potential loss is known upfront. Is your current $400 loss the originally calculated "max loss"? When is expiration?
     
    #16     Feb 6, 2016
  7. K-Pia

    K-Pia

    12 Feb I guess. He said 2nd week.
     
    #17     Feb 6, 2016
  8. K-Pia

    K-Pia

    Iron Condor are short vega right ?
    If you think it's gonna rally or pause,
    Then keep it till next friday.

    But it depends on your Vega too ...
     
    #18     Feb 6, 2016
  9. skvaith

    skvaith

    My Losses are fixed and at the moment I am paying the max loss. My initial question was what adjustments will an option expert do here? I am planning to keep this wait until next friday morning to do my move. Hence the question.

    This forum has been very helpful so far. I should come here often.
     
    #19     Feb 6, 2016
  10. K-Pia

    K-Pia

    A pro would take his loss as planned I guess.
    It's like any new trader that don't take his loss wishing to recover.
    Unfortunately it doesn't always recover. And often goes even worse.
    In your case it can't go worse. So it can only stay the same or get better.
    I can't help you to swipe it under the carpet. Maybe there is a way.
    But I am not a pro with options. But I take my loss if wrong.
    You've been wrong on that trade. Take your loss.

    Or ask your GOV to bail you out.
     
    #20     Feb 6, 2016