People are always teaching you to use candlestick charts but for something like this.. You should learn how to use a TPO chart or at least a volume profile on your chart. The top would be the value area high and the low would be the value area low. If the POC is right in the middle, you’re golden! No channel needed.
@ForexRevolution to be honest I haven't done the win/loss calculation. If you win and all contracts expire worthless you get paid the 12k something. If the index goes beyond one wing of the Condor, you loose 5000$×5 - the premium from the beginning, so the 12050 Of course you bet in a predetermined environment. So in this case you have a upper and lower boundary. Of course of the index breaks out then you loose. But if 100% of the trades work out all of us would be millionaires. A little bit of chart analysis you always have to do
Nice to show a powerful professional strategy to new comers without any mention about the risk and on an index with the highest open prices. You should get banned not mentioning the risks: only one IC going wrong and you clear out ten or more winning IC if you had the chance to cash them in before. 😠
Thanks! Always love your content. Playing defense is huge on this strategy. Delta hedging rolling up or down the strike prices and/or out. I would love to see a video on how you play defense with this one.
Six months seems to be an eternity when considering the market. Is this strategy appropriate for shorter time frames and with fewer contracts? As an outsider new to options, it appears the overall market seems to have a knee jerk reaction to virtually any event that comes along. Would like to see another video on the IC strategy detailing outcome when things do not go as planned.
Gentlemen, options are great, but if you don't teach active options management/recentering/rolling of positions, then it is a way to blow up. please do not leave out these aspects in your videos. R/R=1.07 is not worth it.
Exactly. They are setting up newcomers for massive losses and failure by not fully educating on the potential downside and emphasizing the super-poor risk/reward.
Does the stock price have to reach the middle position of $1826.59 before I can open a trade? Can I open a Iron Condor if the current stock price is above the middle position?
What happens if at some point the price goes outside the channel so one of the short legs gets ITM and you get assigned? How should an investor react in such scenario?
Could have also considered closing the Put wing when the RUT tempted the upper limit as the Put Credit Spreads, were then, inexpensive to close. Great video 👍
This trade is insane!!! Where is the trade management? If you would have done this same trade in the SPX for March using Aug-22 highs, and Oct-22 lows (4300/3500), you would have gotten wiped out. If done in the NDX, it would've been even worse. Then you're going to go enter into an Iron Condor in the RUT on March 9th? After Silicon Valley news broke? RUT dropped 100 points in the next two days. (If anything, sell the call spread and wait to sell the put spread lower, but anyway....) Luckily, the Fed stepped in and back-stopped everything and the RUT takes off towards the 2000 level in Aug-23...as you're approaching expiration? Trade MGMT would have you take off the call spread as it started to approach - maybe - the 1900 range in July and then (possibly) move the put strikes up to 1700 or 1750 to collect more credit. This trade's success was just dumb luck. That's all.
ofcourse, but this is just an introductory example. How could you explain the trade management in 10 minutes? You may also add: why wait until RUT is in the middle of it's long term range? Better sell the call spread when it's close to the upper range and the put spread when it approaches the lower range. This way you may add security without losing credits. But anyway, that's just an introduction!
Options Trading Workshop tinyurl.com/mr2bdkrm
People are always teaching you to use candlestick charts but for something like this.. You should learn how to use a TPO chart or at least a volume profile on your chart. The top would be the value area high and the low would be the value area low. If the POC is right in the middle, you’re golden! No channel needed.
Do you have any recommended videos to learn this?
@@Saffatt trader dale
@@Saffatt also trade brigade if you use ToS thinkorswim
you never mentioned what would happen if the price will go below/above the range
will it be 12,000$ loss?
Well he mentioned, the 12050$ worst case
@@CptCarbon so you are betting on a 95% win. One loss will whipe out years of profit. Good luck
@ForexRevolution to be honest I haven't done the win/loss calculation. If you win and all contracts expire worthless you get paid the 12k something. If the index goes beyond one wing of the Condor, you loose 5000$×5 - the premium from the beginning, so the 12050
Of course you bet in a predetermined environment. So in this case you have a upper and lower boundary. Of course of the index breaks out then you loose. But if 100% of the trades work out all of us would be millionaires. A little bit of chart analysis you always have to do
Nice to show a powerful professional strategy to new comers without any mention about the risk and on an index with the highest open prices. You should get banned not mentioning the risks: only one IC going wrong and you clear out ten or more winning IC if you had the chance to cash them in before. 😠
Which is why i always read comments from experts after watching them videos
Thanks! Always love your content.
Playing defense is huge on this strategy. Delta hedging rolling up or down the strike prices and/or out.
I would love to see a video on how you play defense with this one.
Good that you do the basic stuff via a link nowadays. Thank you.
Also, great video! Interesting content
So, what happens IF the market value at expiration is OUTSIDE the range one selected? How much does one lose?
$5k worse case scenario.
@@michaelmtenga5387 It's a loss of up to $25K because the example uses 5 contracts.
Actually, $25K less the collected premium to be precise.
$25K less the collected premium is the max loss.
Six months seems to be an eternity when considering the market. Is this strategy appropriate for shorter time frames and with fewer contracts?
As an outsider new to options, it appears the overall market seems to have a knee jerk reaction to virtually any event that comes along.
Would like to see another video on the IC strategy detailing outcome when things do not go as planned.
There is a video on this channel where Seth uses the Iron Condor on a one day trade, day by day
I dunno, $13K seems like a very small win after six months.
Do you hold spreads to expiration or close early?
How did you determine your short strikes?
Gentlemen, options are great, but if you don't teach active options management/recentering/rolling of positions, then it is a way to blow up.
please do not leave out these aspects in your videos. R/R=1.07 is not worth it.
they are leaving ou these 'small' things on purpose in order for you to buy their course ;)
Exactly. They are setting up newcomers for massive losses and failure by not fully educating on the potential downside and emphasizing the super-poor risk/reward.
Does the stock price have to reach the middle position of $1826.59 before I can open a trade? Can I open a Iron Condor if the current stock price is above the middle position?
Thank you!
Why are the ask-mid-bid prices in the negatives when ordering these?
And, which are most and least favourable in this case?
What happens if at some point the price goes outside the channel so one of the short legs gets ITM and you get assigned? How should an investor react in such scenario?
Why do so many trading firms want me to sell options...
My broker for some reason requires a BP of 100x the share price per contract even on a risk defined trade
Do you use scanners and if so, which ones do you use to identify iron condor candidates?
Could have also considered closing the Put wing when the RUT tempted the upper limit as the Put Credit Spreads, were then, inexpensive to close.
Great video 👍
Ok is it better to have a single iron condor or have both “wings” separate so you can make money on either direction or sell a loss.
Nothing about time decay?
This trade is insane!!! Where is the trade management? If you would have done this same trade in the SPX for March using Aug-22 highs, and Oct-22 lows (4300/3500), you would have gotten wiped out. If done in the NDX, it would've been even worse. Then you're going to go enter into an Iron Condor in the RUT on March 9th? After Silicon Valley news broke? RUT dropped 100 points in the next two days. (If anything, sell the call spread and wait to sell the put spread lower, but anyway....) Luckily, the Fed stepped in and back-stopped everything and the RUT takes off towards the 2000 level in Aug-23...as you're approaching expiration? Trade MGMT would have you take off the call spread as it started to approach - maybe - the 1900 range in July and then (possibly) move the put strikes up to 1700 or 1750 to collect more credit. This trade's success was just dumb luck. That's all.
ofcourse, but this is just an introductory example. How could you explain the trade management in 10 minutes? You may also add: why wait until RUT is in the middle of it's long term range? Better sell the call spread when it's close to the upper range and the put spread when it approaches the lower range. This way you may add security without losing credits. But anyway, that's just an introduction!
You assume a person is just going to hold.. You roll the tested legs
They explain how to manage the Iron Condor in another video by rolling one of the legs. Really great video as well.
what were the deltas of the short strikes at the time of trade?
மச்சி நி பேசுறது புரியுது டா ஆனால் உன் startgey ஒரு புரியல டா
How much could you expect drawdown to be if there was a spike in IV, 1$ per basis point? 2nd derivatives in options may merit a video all their own.
Nobody can answer that. That depends on the timing.