Friday, May 29, 2009

Re: [TheOptionClub.com] IC Delta as an Exit/Adjustment Indicator



The notes I have from his webcasts and seminars say this:

On a "Low Prob" condor, which is one you put on about 35 days prior to expiration:
Set your short strikes at about 16 - 19 delta (per contract).
Adjust when the unfavorable side short delta hits 30.

One a "High Prob" condor, which is one you put on about 39 - 45 days prior to expiration:
Set your short strikes at about 10 delta.
Adjust when the unfavorable side short delta hits 20.

His most recent IC webinar, which is on the CBOE web site, is really pretty good, showing several
adjustment techniques, and the reasons for choosing among them.



On Fri, May 29, 2009 at 11:17 AM, cguy444 <carmelo5791@aol.com> wrote:


Does anyone here use delta as one way of determining when to exit or adjust an Iron Condor position?

I recently watched a CBOE webinar by Dan Sheridan where the topic was adjusting condors. He said when the delta reaches a certain point think "Danger Will Robinson" :-). He didn't get into too many specifics so I thought I'd ask the group.

Thanks,

Carmelo




--
Steve Goings
Novagraph
http://www.novagraph.com

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