Monday, February 1, 2010

RE: [TheOptionClub.com] Calendars and Iron Condors

 

Chet,

 

See my response below.  You are correct these are just my opinion and I am not any type of professional or advisor.

 

Good luck,

Renee

 

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of Gayatri Maskeri
Sent: Monday, February 01, 2010 3:11 AM
To: OptionClub@yahoogroups.com
Subject: Re: [TheOptionClub.com] Calendars and Iron Condors

 

 

Hi Renee,
Couple of questions:
1.  I too am a fan of Dan Sheridan like you and am looking at different possibilities for learning/taking a course.  You chose to go with SJOptions. So, here are my questions: (A)  Why did you choose SJOptions, how long have you been with them and how do you like it so far? SJOptions was less expensive and did not have any time limits.  Morris is dedicated to teaching and experimenting with new options trades.  


    (B)  Do you place real trades with their help and what kind of gains do they really get with their Risk free trades? Morris teaches his techniques in paper money accounts. However, I place real trades that mimic his techniques but he does not give you the trade.  Additionally, we often go over students real trades and adjustment options in class.  But in general, he wants to teach you to fish, not hand you a fish.
2.  What are the tax advantages of going with the index trades?  And the 1265 you mention - Sorry for asking a silly question but I would appreciate your response if it is not too complex and I will not hold you reponsible for your statements as I recognize that you are not my accountant - you don't have to worry about that.  I am just trying to understand.

The tax rate on the 1265 contract items is 60% long term 40% short term –no matter the length of time – instead of 100% short term on individual stocks and ETFs.


Thanks!
Chet.

 

From: "Reneehug@Comcast.net" <Reneehug@Comcast.net>
To: leobusc@yahoo.com
Cc: OptionClub@yahoogroups.com
Sent: Sun, January 31, 2010 5:16:34 PM
Subject: Re: [TheOptionClub.com] Calendars and Iron Condors

 

Leo,

 

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.

 

Here's wishing you success with your trades.

Renee

 


----- Original Message -----
From: "leobusc" <leobusc@yahoo. com>
To: OptionClub@yahoogro ups.com
Sent: Sunday, January 31, 2010 2:54:51 PM GMT -05:00 US/Canada Eastern
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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