Saturday, May 30, 2009

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




I will try to explain myself with example:

Let say I have IC on FLS :bull put 60/55+bear call 80/85 credit 0.80$ risk 4.20$ for June.

and now one of the short broke assume the  side of short call 80$.
what do I do?
1 .   The IC stay as it is.
2.add long call for Oct (I can't see shorter time in the chain) at $ 80 ask price :6.6$

what is your new risk: (6.60+4.2)=10.80 debit.
I want to get out from the trade with at 10%-20% profit ,so I need to sell long call
10.80*1.1=11.88$
is it make sence?

we can go on and built the progrem :with exit point PE,SE.
(btw I call it IC plus )


Nava Elgar



   


From: "Akram Khan" <bronchoscope@gmail.com>
Sent: Saturday, May 30, 2009 4:58 AM
To: OptionClub@yahoogroups.com
Subject: RE: [TheOptionClub.com] IC Delta as an Exit/Adjustment Indicator

Nava when the IC hits your short strike you are saying you buy a long option ATM two months out turning that strike into a calendar and having an extra long strike (from your original IC)?

 

Akram Khan

 

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of Nava Elgar
Sent: Friday, May 29, 2009 2:05 PM
To: OptionClub@yahoogroups.com
Subject: re: [TheOptionClub.com] IC Delta as an Exit/Adjustment Indicator

 



I adjust Iron Condor in this way:
when the stock hits the short strike I am hadding long  ATM for another 2 month.

When it happen my Iron condor now he's Iron condor plus.

I am looking from my long to cover my original risk +the risk of the long +% gain.

Did it in the past and it is working.

Keep simple.

Nava  Elgar



 
www.GoBulls.co.il

From: "cguy444" <carmelo5791@aol.com>
Sent: Friday, May 29, 2009 6:09 AM
To: OptionClub@yahoogroups.com
Subject: [TheOptionClub.com] IC Delta as an Exit/Adjustment Indicator

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

 

 

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