The title says iron condor. You started talking about iron condors. Then all the slides were about put spreads. Was this option jive about iron condors or put spreads?
You either close it or roll it forward. And not 21 DTE exactly. Around 21 DTE, after that the risk ain't worth holding. You are looking to get about 50% of the initial credit. When that happens, you close it.
So what was the average gain? It is implied that the average gain was higher for the dynamic spreads since overall ROC was higher despite larger losses. Were the premiums higher?
@@shawnclark732 I think they mean 45% of the value at risk, averaged over many trades, over time. The problem is, your margin requirements, will be a lot larger than your value at risk. Value at risk essentially encompasses the 95 percentile of outcomes. They should have been clear about it. If they use clickbait with 45%, they should at least explain what they're talking about.
The title says iron condor. You started talking about iron condors. Then all the slides were about put spreads. Was this option jive about iron condors or put spreads?
An IC is composed of 2 spreads. One on each side.
They were talking about wing widths, which is the essence of an IC. Everything makes perfect sense
Lol . Ic is combo of call and put spreads. Bruh… dont trade
What is the approach to trade management at 21 DTE?
You either close it or roll it forward. And not 21 DTE exactly. Around 21 DTE, after that the risk ain't worth holding. You are looking to get about 50% of the initial credit. When that happens, you close it.
So what was the average gain? It is implied that the average gain was higher for the dynamic spreads since overall ROC was higher despite larger losses. Were the premiums higher?
Where was the 45%?
Is that on a single trade?
Is that on your entire account over the course of a year?
Over a year if you’re lucky. But no. They didn’t address that.
@@shawnclark732
I think they mean 45% of the value at risk, averaged over many trades, over time.
The problem is, your margin requirements, will be a lot larger than your value at risk.
Value at risk essentially encompasses the 95 percentile of outcomes.
They should have been clear about it.
If they use clickbait with 45%, they should at least explain what they're talking about.
45% (average is 44.75%) is the annual ROC. Shown on slide #4. And no, it's not your entire account. It's the just trade strategy..