Re: [ConservativeOptionStrategies] Iron Condors - Conservative Strategy?

 

I do a few,  and can say,  first get comfortable with put spreads.  Most of the premium is  in the put side.  The option house pl calculator is handy seeing what you have and will do a condor,  and the probability calculator is good for seeing risk.  The extremely low risk spreads on indices have been figured out by the market makers and often they have the bid ask spreads larger than the difference between the the strikes so the market says what should be a net to you become a net to them.  I have found that often a condor will never be taken and I have to do the put and call separate or give up on the call.   I think the biggest issue with these is that to get the risk low enuf,  you drive the return down and hence the margin way up to get an acceptable total return.   Take a look at RUT.   --- On Tue, 1/26/10, Tom Clark <tec@thomark.com> wrote: From: Tom Clark <tec@thomark.com> Subject: [ConservativeOptionStrategies] Iron Condors - Conservative Strategy? To: ConservativeOptionStrategies@yahoogroups.com Date: Tuesday, January 26, 2010, 8:06 PM   Are Iron Condors considered enough of a conservative strategy for discussion here? If so than I can only assume that some readers of this group may use IC's. I am considering expanding my use of options to include Iron Condors and I'm looking for a mentor. I'm not looking for someone to teach IC's, I've got the general idea, I just want someone with whom I can bounce trade ideas off of and who might just keep me form going off the deep end. All of this would be off-line from the group. If interested drop me a private email. Thanks

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