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ES Wednesday 8-23-17


I'm going to explain these tomorrow and the funny blunder that happened to me yesterday and this morning...just want to get them posted....

You'd have to look to Mondays image and/or video for more info on the Iron condor trade ...there is a corn trade in here that I haven't mentioned but is not part of this discussion
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options



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Watched your options video again Bruce, You covered a lot of good info. I see you used the condor to minimize your risk but didn't you limit your profit potential as well? As long as prices in SPX stay within 1 Std Dev. you should turn a profit correct? Trying to better understand the stradegy.

Thanks,
Sharks
yes...I turned a bull put spread into an iron condor.........so yes, I limited the risk and limited profits but I was trying to learn more about balancing the delta of the trade....so I added the bear call spread ( to make it an iron condor) and took in a total credit of a bit over $300.....so I sold it at at 50% of credit brought in........this is a tasty trade concept.......FWIW...I have calls into TOS and also been in contact with Don Kaufman to try to sort out this EXPECTED move concept......it is posted to the right in () next to the implied volatility of an option chain.........There is still some confusion as to if that EXPECTED move is really a one Standard deviation move....so I need to nail that down once again.
Originally posted by sharks57

Watched your options video again Bruce, You covered a lot of good info. I see you used the condor to minimize your risk but didn't you limit your profit potential as well? As long as prices in SPX stay within 1 Std Dev. you should turn a profit correct? Trying to better understand the stradegy.

Thanks,
Sharks
Edited so those learning can follow along a bit better. Good luck to all.
Originally posted by BruceM

yes...I turned a bull put spread into an iron condor.........so yes, I limited the risk and limited profits but I was trying to learn more about balancing the delta of the trade....so I added the bear call spread ( to make it an iron condor) and took in a total credit of a bit over $300.....so I sold it(BOUGHT IT BACK) at at 50% of credit brought in........this is a tasty trade concept..( I DON'T THINK THEY APPLY THAT TO DEFINED RISK TRADES, DO THEY?).....FWIW...I have calls into TOS and also been in contact with Don Kaufman to try to sort out this EXPECTED move concept......it is posted to the right in () next to the implied volatility of an option chain.........There is still some confusion as to if that EXPECTED move is really a one Standard deviation move....so I need to nail that down once again.
Originally posted by sharks57

Watched your options video again Bruce, You covered a lot of good info. I see you used the condor to minimize your risk but didn't you limit your profit potential as well? As long as prices in SPX stay within 1 Std Dev. you should turn a profit correct? Trying to better understand the stradegy.

Thanks,
Sharks

thanks Big Mike....that should be done with many of my posts........LOL...here is a very good episode ( Ok, I skip ahead and mostly just download the slides....they do great work but they can ramble and I'd rather just get to the research ) that gives a summary of the tasty ideas.....click on "Research Slides" and keep a copy of "5 of 7" and "6 of 7" especially.....


In answer to Mikes question - "yes" they do with iron condors but they usually don't manage the losers unless they have very wide strikes between wings


https://www.tastytrade.com/tt/shows/best-practices/episodes/trade-mechanics-for-entry-management-01-03-2017

and this is a must have as a resource

https://www.tastytrade.com/tt/learn
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