Carmelo,
It is the delta of the short strikes alone he was talking about, not the delta of the entire IC.
At 20 deltas on the short strike per contract, the whole IC delta would be around 6 or 7.
On Fri, May 29, 2009 at 3:04 PM, <carmelo5791@aol.com > wrote:
OK. Thanks.
If I recall correctly, in his most recent webinar, he stated that when the delta reaches -23+/-, an adjustment is necessary. I suppose they were short term IC's.?
From my little experience, once the IC reaches a delta of -20, I'm seeing too much movement in the IC price.,
Do you remember the webinar that he discusses the delta criteria you mentioned?
I have been seeking IC's with a max/min delta of +/-.08. Someone here recommended the +/-.08 delta a little while back. I've been using this for my selections. So far it has worked OK. I'm thinking that you'd want a higher delta for directional plays (i.e. verticals). IC's are neutral, so to me it makes more sense to keep delta low, so that you can collect your daily theta.
Thanks for the comments.
Carmelo
-----Original Message-----
From: Steve Goings <jsgoings@novagraph.com >
To: OptionClub@yahoogroups.com
Sent: Fri, 29 May 2009 2:55 pm
Subject: 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.novagrap
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