Sunday, January 31, 2010

Re: [TheOptionClub.com] Calendars and Iron Condors

 

They are different strategies for different markets.  Calendars will work better if IV is relatively low and thn increases after trade put on.  IC are the opposite; they want volaility to decline.  These stragies complement each other though they both can gain from time decay.....Joel

From: leobusc <leobusc@yahoo.com>
To: OptionClub@yahoogroups.com
Sent: Sun, January 31, 2010 2:54:51 PM
Subject: [TheOptionClub.com] Calendars and Iron Condors

 

I am thinking that I want to spend more of my efforts on Index Calendars and Index Iron Condors.

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.

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.

It seems if I can remain disciplined this plan can work even in a volatile market.

My question are:

Do you prefer Calendars or Iron Condors, if you prefer one more than the other why?

What are your favorite indexes (SPY, SPX, RUT, DIA etc)and why?

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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