I actually have something like that.
Unfortunately, it is packed as I am about to move and scanner is also packed anyway.
I cant remember where I found it but it was either in a book or on the internet.
If you keep your eyes open it will likely show up, or something like it.
I think someone on the market student group made a sheet like that this past year.
If you join that group check the files section.
Might be something in the files section of this list as well?
It will help, but nothing will help as much as practice. Paper or single contracts at first!
Ross
--- On Mon, 12/21/09, Joules <jouless360@yahoo.com> wrote:
From: Joules <jouless360@yahoo.com>
Subject: [TheOptionClub.com] Re: Iron Condors ...3 fold question....?
To: OptionClub@yahoogroups.com
Date: Monday, December 21, 2009, 7:04 PM
Well...I can see that I have a lot to learn either way. How about a cheat sheet that I can look at that says...based on the market volatility at this time: put on these types of trades, ie, butterfly, calendar, iron condor, diagonal etc etc. Something to keep me out of trouble. Just a wish list for Christmas. :) Thanks, Joules --- In OptionClub@yahoogroups.com, rvd <rvdidit@...> wrote: > > Paul, I looked at the definition and you are right - I was interpreting wrong. > > But now I look at the definition, I still think an IC is not a very good example of a market neutral strategy because the risk to reward can be so high. > True an ICÂ has both bullish and bearish sides to it, but it still is a directional position. > While a pairs trade is market neutral because in a market downturn both stocks should go down therefore unaffected by the market turn. > > Anyway, Im happy to drop this now - lesson learned.. > > From Investopedia; .
>
> What Does Market Neutral Mean?
> A strategy
> undertaken by an investor or an investment manager that seeks to profit
> from both increasing and decreasing prices in a single or numerous
> markets. Market-neutral strategies are often attained by taking
> matching long and short positions in different stocks to increase the
> return from making good stock selections and decreasing the return from
> broad market movements. Market neutral strategists may also use other
> tools such as merger arbitrage, shorting sectors, and so on. There is
> no single accepted method of employing a market-neutral strategy.
>
> --- On Mon, 12/21/09, Paul Seifert <paulseifert@...> wrote:
>
> From: Paul Seifert <paulseifert@...>
> Subject: Re: [TheOptionClub.com] Re: Iron Condors ...3 fold question....?
> To: OptionClub@yahoogroups.com
> Date: Monday, December 21, 2009, 12:15 PM
>
>
>
>
>
>
>
>
>
>
> 
>
>
>
>
>
>
>
>
>
>
> You are not interpreting the term MARKET NEUTRAL
> correctly.Â
>
> ----- Original Message -----
> From:
> rvd
> To: OptionClub@yahoogroups.com
> Sent: Monday, December 21, 2009 10:03
> AM
> Subject: Re: [TheOptionClub.com] Re: Iron
> Condors ...3 fold question....?
>
> Â
>
>
>
>
>
> Thinking about this thread, the only thing that bothers
> me is the idea of an IC as market neutral. MArket neutral means to
> me that the position is unaffected by market direction..
>
> A short
> IC is anything BUT market neutral. It is directional and the direction
> is sideways
> if it is put on in the middle. Bullish if it is put on
> above the market, and bearish below.
>
> If yu want a market neutral,
> why not choose a ratio for zero credit? That way only one direction of
> the market out of three, will effect the position.
>
> --- On
> Sun, 12/20/09, Mary Norfleet
> <naboba1@yahoo. com> wrote:
>
>
> From:
> Mary Norfleet <naboba1@yahoo. com>
> Subject: Re:
> [TheOptionClub. com] Re: Iron Condors ...3 fold
> question.... ?
> To: OptionClub@yahoogro ups.com
> Date:
> Sunday, December 20, 2009, 3:22 PM
>
>
>
>
>
>
>
> Joules,
> In your recent e-mail to
> Chris, you stated: “Also it’s hard to understand how the vols play on
> Condors as the credit is achieved as long as the price stays within
> the breakevens. Based on the volatility now...it says to stay away
> from Condors? Is my thinking right?�
> In general, if volatility
> falls while you are in a condor this helps the trade.Â
> In contrast, if it falls while you are in a calendar this hurts
> the trade. If vols increase while you are in a
> condor, you will probably have to stay in the trade longer to achieve
> your profit -- If vols increase while you are in a calendar trade you
> will be able to achieve your profit faster. Of
> course vols usually increase when the market goes down and they
> usually decrease when the market goes up, so this is another part of
> the total.
> Currently VIX (a
> volatility measure) is around 21 or 22 which is relatively low â€"
> although that would have been high a few years ago when it was in the
> 12-15 range. However, it’s important to look at the
> implied volatilities (IV) of the at-the-money (ATM) calls and puts of
> any particular stock or index you plan to trade â€" and to look at where
> they are now relative to the past 6-12 months. If
> you have Thinkorswim (TOS) as your broker, it is easy to look at these
> data. I don’t know how other brokers present this
> information.
> To understand the
> impact of volatility changes, go to the analyze page in your TOS
> account and put up an iron condor (on your favorite index) â€" place the
> shorts at approximately 12- 15 delta. Set the
> analyze chart to show 68% (1 standard deviation -- SD) on the
> expiration day of your condor. Go to the
> “volatility adjustmentâ€� and increase the volatility â€" the graph will
> show that as the volatility increases, the standard deviations widen;
> the opposite will occur as you decrease the volatility.Â
>
> Do the same
> exercise with an ATM call or put calendar on the same
> index. You will see that as the vols rise, the area
> covered by the calendar increases â€" and as they fall, that area
> shrinks.Â
> To get back to your
> original question on condors -- the credit is achieved as long as the
> price stays within the breakevens (BEs) â€" that is correct; however if
> the vols increase while you are already in a condor, the SD is
> increasing so you then have a higher probability of having the market
> price run through your BEs and leaving you with a loss.Â
> If you have watched Dan Sheridan’s free webinars on CBOE.com
> over the past few years, he has given many examples of trading (and
> adjusting) condors in various market conditions.Mary
> Ann
>
>
>
>
>
> From: jouless360
> <jouless360@yahoo. com>
> To:
> OptionClub@yahoogro ups.com
> Sent: Sat, December 19, 2009
> 6:20:48 PM
> Subject:
> [TheOptionClub. com] Re: Iron Condors ...3 fold
> question.... ?
>
> Â
>
> Chris:
>
> Thanks for the response. My feeling on legging in is
> based on the ebb and flo of the markets from my futures trading days.
> You get a 200 point up day ...then a 150 point down day. Why not take
> advantage of that to leg in on the up and down days. The credits are
> higher and the breakevens are wider. Of course, we need to look at the
> daily chart to see if we are in an uptrend, neutral or in a
> downtrend.
>
> Based on the VIX...I think I should be doing
> Calendars at this time and not Condors? am I on the right track?
>
>
> Also its hard to understand how the vols play on Condors as
> the credit is achieved as long as the price stays within the
> breakevens. Based on the volatility now...it says to stay away from
> Condors? Is my thinking right?
>
> by the way....I just got
> bombarded with another SJoptions email message:
>
> New Trading
> System by San Jose Options
>
> WE JUST GOT BETTER!
>
> We
> already had some of the safest option trading strategies ever taught
> anywhere, but one thing leads to another, and we just got even
> better!
>
> RECENT DISCOVERIES
> Recently, we've developed a
> Self-Adjusting trading system which in a few words is "Simply
> Amazing!" What we've done is discovered a way to trade with nearly
> Risk-Free Insurance. What this means is that the insurance we use to
> protect our trades virtually costs nothing if we do not use it. In a
> normal situation, insurance strategies lose money each month and eat
> up your profits, but we've designed a way around this
> problem!
>
> FOR EXAMPLE
> Let's say you want to trade an Iron
> Condor, but you want to do this with insurance to the upside and to
> the downside. Well, 99.9% of all option traders only know how to
> design a trade where the insurance will eat up most of the profits if
> the Iron Condor is profitable.
>
> With our newly designed
> Insurance Risk-Free method, we can trade the Iron Condor with
> surrounding insurance plays which do not take away from the Condor
> profits. In fact, many of our insurance plays will also make money
> while simultaneously adding insurance to the position.
>
> STUDENT
> FEEDBACK
> Student feedback on this new strategy has been awesome. I
> am loving it myself. In all my years in the option educational field,
> I have never seen or heard of this technique. Students are saying that
> I invented this. They could be right, but all I know is that our new
> Risk-Free Insurance strategy is the best thing I have ever seen when
> it comes to trading options.
>
> If it was $199 deal, I think more
> of us would buy to satisfy our curiousity. However, at $2995....I just
> can't do it.
>
> Joules
>
>
> --- In OptionClub@yahoogro
> ups.com, "TheOptionClub" <chris@> wrote:
> >
> >
> Joules,
> >
> > 1. The wider expiration break evens you find
> with a 3 month iron condor
> > reflect the fact that those options
> were sold three months prior to
> > expiration instead of, say, 30
> days away. While the spread is wider,
> > you must also stay in it
> longer to achieve the potential of the
> > expiration risk graph.
> There is always a trade-off between risk and
> > reward, so don't
> fool yourself about the notion you can sell 3 month
> > condors
> and have better probabilities than selling 1 month condors.
> >
> Having said that, also understand that selling 30 days condors is
> not
> > "better" than selling 3 month condors. Whether you make
> money over the
> > long term has much more to do with your risk
> management and your
> > discipline than it does with the width of
> a spread.
> >
> > 2. Legging into an iron condor can be
> beneficial IF you're able to sell
> > the spreads at opportune
> times. Unless you are comfortable timing the
> > market
> fluctuations, I would not suggest legging into an iron condor.
>
> > In my experience, this tactic works best if you think of
> yourself as a
> > vertical credit spread trader who sometimes
> finds that they are trading
> > both sides of the market. In other
> words, the goal would not be to
> > trade an iron condor but it
> would simply be a happy coincidence when you
> > find yourself in
> one.
> >
> > 3. You really should be aware of what is going
> on with implied
> > volatility because it will effect your spread.
> Not paying attention to
> > implied volatility as an option trade
> is sort of like a pilot who does
> > not pay attention to
> altitude. Probabilities, standard deviation,
> > etc., are all
> dependent upon implied volatility and if vols rise after
> > you
> put your trade on it will diminish your probability of success
> and
> > effect your profitability. Calendar spreads are very
> sensitive to
> > changes in implied volatility.
> >
> >
> Christopher Smith
> > TheOptionClub. com
> >
> >
> >
> --- In OptionClub@yahoogro
> ups.com, "jouless360" <jouless360@ > wrote:
> >
> >
> > > Option Club Members:
> > >
> > > I
> have a 3 part question on Iron Condors. I am relatively new at
> this
> > and the Condor does have an appeal of safety, even though
> you have to
> > put up more risk capital to get decent returns.
> Here are a few
> > questions:
> > >
> > > 1. I
> noticed I can get wider breakevens if I go out 3 months..ie to
> >
> March 10 on the RUT or SPX. I was wondering if I go out that far...can
> I
> > close them in 30 days with the idea that the theta decay
> will be enough
> > to make a decent return. I know the theta kicks
> in better the last 30
> > days but I cant seem to get a decent
> return with wider breakevens for
> > the risk in a 30 day
> condor.
> > >
> > > 2. I have seen benefit in legging in
> to Iron Condors ..by selling the
> > Vertical Call portion on a
> nice upday...and selling the Vertical PUT
> > portion on a nice
> down day. This could bring in a better credits and
> > allowing
> for wider breakevens. Is this a reasonable strategy..or do you
> >
> prefer to sell the entire Iron Condor at the same time?
> >
> >
> > > 3. Can I sell Iron Condors without worrying about
> the volatility
> > charts..or is this strategy affected more
> adversely with the vols as
> > opposed to a Calendar
> trade?
> > >
> > > I thank all of you in advance for
> your expertise and thoughts on this
> > subject.
> >
> >
> > > Happy Holidays!
> > > Joules
> >
> >
> >
>
------------------------------------
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