Sunday, January 31, 2010

Re: [TheOptionClub.com] Calendars and Iron Condors

 

Renee, are you doing high or low prob iron condors in RUT? What are you short option deltas when you initiate the position? How many days before expiration do you put the position on? Do you get any input from VIX or RVX? I currently have an IC in RUT. My Feb short put is 560 and the delta was -13 when I put it on (RUT was at 618). Now, with RUT at 602, the delta has climbed to only -16. Doing OK, but I have to admit I'm a little nervous. When do you roll a threatened wing farther out? Do you look at deltas, or perhaps tech analysis with support, resistance, trend lines, fib numbers?

Thanks,
RFH

--- In OptionClub@yahoogroups.com, Reneehug@... wrote:
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> Leo,
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> I am also a big fan of Dan Sheridans but have chose instead to study with San Jose Options.  But your answer your questions.... I prefere Iron Condors, as long as the volalitility is high enough,  because it makes sense to me to sell a decaying asset instead of buying one.  I prefer the RUT because it has higher IV but takes more to move it since 2000 stocks making up the index.  I also put IC's on SPX & NDX but my favorite is the RUT.  I use these 3 indices because of the tax advantages of 1265 contracts.  I found the trick in not to get greedy.  To be happy with making 2/3rd of the initial credit and moving on.
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> Here's wishing you success with your trades.
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> Renee
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> ----- Original Message -----
> From: "leobusc" <leobusc@...>
> To: OptionClub@yahoogroups.com
> Sent: Sunday, January 31, 2010 2:54:51 PM GMT -05:00 US/Canada Eastern
> Subject: [TheOptionClub.com] Calendars and Iron Condors
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> I am thinking that I want to spend more of my efforts on Index Calendars and Index Iron Condors.
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> I have been watching as many of Dan Sheridan's videos (including the recent one on Option Club Thanks Chris)as I can find. So I know I have to be able to adjust on a timely basis.
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> For example Dan suggests a first adjustment on an Calendar when you are down 20% of your initial debit spread by replacing half of your calendars with calendars at the strike closest to the breakeven price.
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> It seems if I can remain disciplined this plan can work even in a volatile market.
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> My question are:
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> Do you prefer Calendars or Iron Condors, if you prefer one more than the other why?
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> What are your favorite indexes (SPY, SPX, RUT, DIA etc)and why?
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> Also, there are only 20 days left in February period would you play Feb or just wait a week and begin with a March Calendar?
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