Monday, June 1, 2009

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



"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$"

what strike/month? how do you get 11.88?

--- In OptionClub@yahoogroups.com, "Nava Elgar" <nava@...> wrote:
>
> 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
>
>
> www.GoBulls.co.il
>
> ----------------------------------------
>
> From: "Akram Khan" <bronchoscope@...>
> 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@...>
> 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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