Thursday, December 17, 2009

[TheOptionClub.com] Iron Condors ...3 fold question....?

 

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

__._,_.___
The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading.  All messages and postings, and any materials circulated are provided for discussion and educational purposes only.  No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice.  All investors are encouraged to consult a qualified professional before trading in any security.  Stock and option trading involves risk and is not suitable for most people.  There is no guarantee that any information provided is accurate and, may in fact, be wrong.  It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student.  As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
.

__,_._,___
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)