@@seanwaters5049 you trying to get a better fill? I ain't got time for that. Plus my broker automatically price improves all my trades, especially for spreads. So it doesn't make sense to leg into a complex trade in my situation.
If the price of the instrument is threatening one side of the short strangle, should't we choose different strikes for the next short strangle strikes are equidistant from the price rather than using the strikes that we began the "campaign" with?
Simple. By the time the short strangle options expire , you would also close the long strangle and roll the strangle to a different strikes in the same month they were before or open the position in the next month out
@@ProsperityEngine OK, let's say one leg is a 400/380P and for whatever reason, the underlying dive bombs to 395. Are you saying to simply close down the entire trade and rewrite both the put and call side?
Interesting. If the longs have stayed OTM, it's best to sell them while they still have value a week out, rather than doing a final roll of the short options into the final week and risking the spread width on the resulting iron condor? Are there cases where you would roll one or both of the short options into the final week?
Great strategy! I knew that the 2-month option is losing value slower than the shorter term, but I never would seek to exploit it. I think to implement it there should be a good, maybe even automated plan to handle the case if index price gets into between long and short(50)-range(70).
This may work until the price blows through both legs on one side. This would be more helpful if taught how to defend this scenario. Otherwise your small wins may be blown out by one big loss that is coming. It’s just a matter of when.
This seems like a lot of risk for only a few dollars profit. Using backtesting it's easy to choose scenarios in which you profit, but what are the odds that every one of those rolls will work out in your favor? Seth has some pretty good strategies in general but doesn't talk about when they work against you. You also seem to leave out one of the most important parts, which is why you chose the strike prices in the initial trade. You say there's a specific reason for those strikes and you cover them in another video and don't provide any links to that video. And as always with Seth's videos, there are many typos in this one. It shouldn't take much effort to edit these videos for typos.
Register for upcoming workshop here: bit.ly/3hEu8Al
still going strong with the propaganda I see.
I've been doing this for awhile now. But I call them "calendar condors".
Very similar to my core trading strategy. Nice to know professionals use the similar tactics. 👍
I leg into the longs
@@seanwaters5049 you trying to get a better fill? I ain't got time for that. Plus my broker automatically price improves all my trades, especially for spreads. So it doesn't make sense to leg into a complex trade in my situation.
@@thehoopscoop sounds awesome..who's your broker?
@@davidr8812 I use Tastyworks primarily, but Thinkorswim also does a good job with price improving trades.
@@thehoopscoop Good to know. Thank you
Watching this at 11:45 pm doesn't quite cut it for me. I'll rewatch it in the morning with less cobwebs in my head.😴😁
Me too.
great presentation. how would this be managed if SPX moves through short strikes? Also, how did you come up with 70 points, in particular?
Nice work!
If the price of the instrument is threatening one side of the short strangle, should't we choose different strikes for the next short strangle strikes are equidistant from the price rather than using the strikes that we began the "campaign" with?
Nice presentation on how rolling can generate cash flow, however, the $$ are in the details. What happens if the market blows through a short strike?
Simple. By the time the short strangle options expire , you would also close the long strangle and roll the strangle to a different strikes in the same month they were before or open the position in the next month out
@@ProsperityEngine OK, let's say one leg is a 400/380P and for whatever reason, the underlying dive bombs to 395. Are you saying to simply close down the entire trade and rewrite both the put and call side?
As long as any of your long strangles are not violated you keep rolling over
RE: 6:35 - High prob. of profit means nothing if you're collecting pennies. Selling deep OTM puts on index will give you a high prob of profit.
Interesting. If the longs have stayed OTM, it's best to sell them while they still have value a week out, rather than doing a final roll of the short options into the final week and risking the spread width on the resulting iron condor? Are there cases where you would roll one or both of the short options into the final week?
Great strategy! I knew that the 2-month option is losing value slower than the shorter term, but I never would seek to exploit it. I think to implement it there should be a good, maybe even automated plan to handle the case if index price gets into between long and short(50)-range(70).
lol so how do you lose i would assume this happens from hitting one of the sides to early.
I thought since I understand Credit spreads, and Iron Condors that learning this strategy would be easy. Boy I was wrong. 🤣
Price goes up, vol crushes , you get a sag , it's good to know all these strategies though.
This may work until the price blows through both legs on one side. This would be more helpful if taught how to defend this scenario. Otherwise your small wins may be blown out by one big loss that is coming. It’s just a matter of when.
This seems like a lot of risk for only a few dollars profit. Using backtesting it's easy to choose scenarios in which you profit, but what are the odds that every one of those rolls will work out in your favor? Seth has some pretty good strategies in general but doesn't talk about when they work against you.
You also seem to leave out one of the most important parts, which is why you chose the strike prices in the initial trade. You say there's a specific reason for those strikes and you cover them in another video and don't provide any links to that video.
And as always with Seth's videos, there are many typos in this one. It shouldn't take much effort to edit these videos for typos.
I call these the double poor mans covered call/put. It’s not very catchy.
I like that. The impoverished twins!