One Shot Condors

[luckyd1976]

My One Shot Condors

50% of the Condor Allocation is in the front month and the other 50% is waiting for the next month.

Generally likes playing the SP500 highest prices w/good volitility.
Check to make sure no earnings announcements are upcoming during the month.

*Stay @ .10 delta when opening* -This gives you the cushion for error.

Exits
S-Side Condor legs are @.30 delta
or
If Costs are 3x Credit received

 

[luckyd1976]

Tuesday afternoon

SPY
JUN10

I'll be checking delta's for entry
But if present time right now was 3pm Tuesday I would be looking at the 130/128/103/101
Net Credit $0.20 or atleast a 10% return.

Let's talk alittle about Money Management
I use @ 40% of this strategies bankroll (Based on the Kelly formula) Im comfortable with the 40% because I know this strategy runs 70%-85% win rates. Of course you could bet less. But I wouldnt recommend any more than 40% of bankroll.

 

[luckyd1976]

Re: Tuesday afternoon

SPY
JUN10

I'll be checking delta's for entry
But if present time right now was 3pm Tuesday I would be looking at the 130/128/103/101
Net Credit $0.20 or atleast a 10% return.

Well Obvisiously with the market drop today I cant quite take this IC so I looked and filled just now a
SPY JUN10 Iron Condor
129/127/102/100
Net credit for $0.20 (10% Return)

 

[luckyd1976]

Re: Tuesday afternoon

Well Obvisiously with the market drop today I cant quite take this IC so I looked and filled just now a
SPY JUN10 Iron Condor
129/127/102/100
Net credit for $0.20 (10% Return)

Looking ok still. Losing alittle. If we get two more down days in a row or Delta's -.30 by end of day or Monday I'll close out S-side JUN10 102 Puts Watch the deltas for the exit.

 

[luckyd1976]

Great up day. So -.13 for my short sides are good and all is boring and well in the IC world.

 

[luckyd1976]

Let me try and explain for accounting purposes what the Iron Condor does. When you first take a position. You will see the jump in your Cash balances. But the positions themselves will show you a loss.

Example: Cash 25k starting account. After the position 25.8k Cash but maybe a 23.5k Mark To Market (M2M) Account Value.

Dont be alarmed by this. Because with Condors it's about the Cash value. And as time (Theta decay) gets closer to the expirations dates the Account value will rise to meet the Cash value.

 

[luckyd1976]

Reply to the Stop Loss of 3x Credit re'ved and or +-30 deltas.

Those levels are just where Im comfortable. and yes just because the market reaches that level doesnt mean it will continue to the S-Side and make it ITM. Another form of Stoploss can be 1% before price is ITM of S-Side.

 

[luckyd1976]

Rules on Rolling -If you want you can roll in the legs after you capture 75%-80% of profits. It helps clean up the trade and get some additional returns expecially in these higher volitility environments

 

[pssonice]

No entry No trade just talk-talk-talk

.

 

[luckyd1976]

Love this guy... Thank you for your opinion.