I always learn unique angles from these videos since they go more in depth regarding how specific options strategies behave....much better content than other options / trading channels!
I did a very similar trade but I sold it too early (beginning of week) and not far enough out of the money each way. Theta was in my favor until the day of earnings and the IV went up enough for me to close it early break even. Learned my lesson and my thoughts on the next one were just confirmed by this video, thank you!
Hi Seth love your videos. Learned a lot from you. I did a backtest of this trade using the JAN19 NFLX earnings. With 10$ wings with the shorts at 23 Delta 9000$ Loss and 4500$ for 5$ wingspans. Divide all this by 15 if you just do 1 lot. So newer traders size accordingly! Always get into a trade thinking what you can lose if t goes south. Don't just see wow 5000$ in 2 minutes ; ) In NFLX 2 weeks ago this would have turned out as -9000$ in 2 minutes!!
Great video, I was actually looking at employing this strategy last week. Although, I think it would be beneficial to show how to trade out of this in the case of a sharp move up our down outside your bounds.
you can't really do much until the day after and usually if you have spaced out the Condor properly based on previous moves you should be okay, but you may have to close it early if it moves more than expected to limit your loss or use the long put or call and ride it out
As a rule of thumb, if you get 5k premium while risking 10k on the trade, the trade has about 10/(10+5)=2/3 probability of being successful and 5/(10+5)=1/3 probability of being unsuccessful. So better be prepared to cough up 10k of your money 1/3 of the time.
Just a BIT of constructive criticism. All these tutorials in the beginning of the video, you should cut them out completely and make a dedicated separate video for beginners and refer the to beginners to go watch that tutorial video before proceeding. Literally feels like you are just dragging out time for ad revenue hitting the 10 minute mark explaining calls and puts every single video. Its absolutely and unnecessarily redundant vs just referring beginners to a master tutorial video.
i was turned down from SMB and luckily i found a place another group that helped fund me i made 638grand last week and just want to say thank you smb for turning me down and not having faith in me it gave me the push to be the best i can be and to keep adjusting and thriving for more every month i truly do appreciate your videos and teachings even though you didnt become my mentor i have learned a lot about pushing my self to the limit and to never give up or settle. you have taught me to always look for improvement and never settle for nothing but my own very best
Your max loss is the width of the strike subtracted by the premium you receive. There are rare cases where your short strike may expire ITM and your long strike expires OTM and you face a greater loss due to assignment, but that is very rare and would be avoided by closing the spread out before expiration. I hope this helps!
The major thing I learned from this is never buy high impl vol options no matter what. Maybe in a short term call but long term is just asking for trouble.
I always learn unique angles from these videos since they go more in depth regarding how specific options strategies behave....much better content than other options / trading channels!
I did a very similar trade but I sold it too early (beginning of week) and not far enough out of the money each way. Theta was in my favor until the day of earnings and the IV went up enough for me to close it early break even. Learned my lesson and my thoughts on the next one were just confirmed by this video, thank you!
Great video! Thanks for adding the markers so I can skip ahead to the play since I'm an experienced options trader.
Hi Seth love your videos. Learned a lot from you. I did a backtest of this trade using the JAN19 NFLX earnings. With 10$ wings with the shorts at 23 Delta 9000$ Loss and 4500$ for 5$ wingspans. Divide all this by 15 if you just do 1 lot. So newer traders size accordingly! Always get into a trade thinking what you can lose if t goes south. Don't just see wow 5000$ in 2 minutes ; ) In NFLX 2 weeks ago this would have turned out as -9000$ in 2 minutes!!
Great video, I was actually looking at employing this strategy last week. Although, I think it would be beneficial to show how to trade out of this in the case of a sharp move up our down outside your bounds.
you can't really do much until the day after and usually if you have spaced out the Condor properly based on previous moves you should be okay, but you may have to close it early if it moves more than expected to limit your loss or use the long put or call and ride it out
Man this is great stuff. Appreciate your time. Likes
As a rule of thumb, if you get 5k premium while risking 10k on the trade, the trade has about 10/(10+5)=2/3 probability of being successful and 5/(10+5)=1/3 probability of being unsuccessful. So better be prepared to cough up 10k of your money 1/3 of the time.
How many days before the earnings day should the Iron Condor be placed?
Just a BIT of constructive criticism. All these tutorials in the beginning of the video, you should cut them out completely and make a dedicated separate video for beginners and refer the to beginners to go watch that tutorial video before proceeding. Literally feels like you are just dragging out time for ad revenue hitting the 10 minute mark explaining calls and puts every single video. Its absolutely and unnecessarily redundant vs just referring beginners to a master tutorial video.
How do you calculate how far away from the current price you want to set up?
look at previous percent moves from the previous earnings
50% in One day ... Incredible.
i was turned down from SMB and luckily i found a place another group that helped fund me i made 638grand last week and just want to say thank you smb for turning me down and not having faith in me it gave me the push to be the best i can be and to keep adjusting and thriving for more every month i truly do appreciate your videos and teachings even though you didnt become my mentor i have learned a lot about pushing my self to the limit and to never give up or settle. you have taught me to always look for improvement and never settle for nothing but my own very best
What is the optimal time to execute this trade if options cannot be traded pre and post market??
the time when IV is the highest, which would probably be the day of and near the end of the day of earnings
Metal bird gang let's gooo
What's the worst possible scenario that can happen with one of these trades(condors)
Your max loss is the width of the strike subtracted by the premium you receive. There are rare cases where your short strike may expire ITM and your long strike expires OTM and you face a greater loss due to assignment, but that is very rare and would be avoided by closing the spread out before expiration. I hope this helps!
Ornithology
You don't have to tell us what calls and puts are in every video. Just make a playlist for noobs and let's streamline the info for everyone else👍
The major thing I learned from this is never buy high impl vol options no matter what. Maybe in a short term call but long term is just asking for trouble.
exactly just sell when the IV is high
How do you decide how far you need to go away from strike price to sell puts and call ?