I’m all for taking into account volatility skew, but on the side away from the volatility skew where the strikes are narrower, wouldn’t it make the most sense to just buy back even further out of the money, like a 0.05 delta, to maximize bp by having equidistant spreads, and maximizing credit, while basically taking the same risk.. given that volatility skew is on the other side?
Oil actually did go to zero. But ill give you that it bounced back. So there is no chance for a commodity to bankrupt. Gold might actually have a reverse skew now.
The color scheme you use is confusing. This is because you illustrate your long put in green and your short put in red. But you buy a long put and as such the transaction is a debit against your account and vise versa for the short position. Debits against your account are usually red and credits are usually black. Though I suppose a credit could be geeen.
Nope! There is no early assignment, so deep ITM options will not turn to shares of stock like american style options can, so that's actually a nice perk in my opinion. Just be aware of expiration dates like SPX monthlies, which expire Friday MORNING, meaning the last time to trade the strategy would be Thursday before the close.
I know this is an old video, but I found it cuz I noticed something from selling condors on SPY... ....the 20 deltas for the putts are MUCH further out the money than the calls, yet the call spread side has gotten broken way more often, even when centered on the current price. For instance, a share price of $435 is showing right at 16 delta for the 441 calls and the 421 puts, yet it seems SPY has gained $6 in a week more often than it has lost $6. It seems that dropping $14 in a week to $421 would be a big enough drop to cause a mass panic. Even this last "biggest drop all year" would not have broken a 16 delta put side of $421. It sure AF can bounce all the way from from that catastrophic event to test that $441 call side a week later, tho. I'm not seeing the point of selling the put side so far down just to match deltas.Either I'm missing something, or I would have to do something like a 30 delta on the put side and a 10 delta on the call side to give a 50/50 chance of either side being broken. What am I missing?
I too have noticed this exactly and specifically on the spy. I’m on the border of just doing put credit spreads on it from now on. Seems like every time I put on a trade my call side gets tested. I do like that 25-30 delta puts to like a 16-10 delta calls
IT depends on the setup, but with dynamic iron condors we typically sell the 20 delta option and buy the 10 delta option, which is too far OTM to collect 50% generally.
Also, how do you even get into this position? Your going to be hard pressed to sell short any option that is out of the money. And the further out of the money you go the harder it gets.
Mike: I learned options from watching your videos. Your clear and to the point, covering all basis. Thank You for the videos.
9:30 - Interesting how that comment aged haha.
My man really said “Hyped up nudes” @9:20 😂
Went to comments to find this haha
Excellent presentation.
Superb concept, to appreciate why one cannot like the video more than once? 😎
would love to see more of dynamic strategies
Well done, and thanks!
I’m all for taking into account volatility skew, but on the side away from the volatility skew where the strikes are narrower, wouldn’t it make the most sense to just buy back even further out of the money, like a 0.05 delta, to maximize bp by having equidistant spreads, and maximizing credit, while basically taking the same risk.. given that volatility skew is on the other side?
OIl going to zero? How bout -$37? 2020 BABY!
Oil actually did go to zero. But ill give you that it bounced back. So there is no chance for a commodity to bankrupt. Gold might actually have a reverse skew now.
Outstanding
The color scheme you use is confusing. This is because you illustrate your long put in green and your short put in red.
But you buy a long put and as such the transaction is a debit against your account and vise versa for the short position. Debits against your account are usually red and credits are usually black. Though I suppose a credit could be geeen.
good presentation. i really love to hear you
Is an iron condor on european style.options risker than american style options if so why?
Nope! There is no early assignment, so deep ITM options will not turn to shares of stock like american style options can, so that's actually a nice perk in my opinion. Just be aware of expiration dates like SPX monthlies, which expire Friday MORNING, meaning the last time to trade the strategy would be Thursday before the close.
@@tastyliveshow great thanks
I know this is an old video, but I found it cuz I noticed something from selling condors on SPY...
....the 20 deltas for the putts are MUCH further out the money than the calls, yet the call spread side has gotten broken way more often, even when centered on the current price. For instance, a share price of $435 is showing right at 16 delta for the 441 calls and the 421 puts, yet it seems SPY has gained $6 in a week more often than it has lost $6. It seems that dropping $14 in a week to $421 would be a big enough drop to cause a mass panic. Even this last "biggest drop all year" would not have broken a 16 delta put side of $421. It sure AF can bounce all the way from from that catastrophic event to test that $441 call side a week later, tho. I'm not seeing the point of selling the put side so far down just to match deltas.Either I'm missing something, or I would have to do something like a 30 delta on the put side and a 10 delta on the call side to give a 50/50 chance of either side being broken. What am I missing?
I too have noticed this exactly and specifically on the spy. I’m on the border of just doing put credit spreads on it from now on. Seems like every time I put on a trade my call side gets tested. I do like that 25-30 delta puts to like a 16-10 delta calls
Great info ,, thanks alot
Funny enough, oil did go to zero (and below) in Spring of 2020.
so we take 25% profit and 75% risk for a defined risk spread?
Typically we set up credit spreads with a risk:reward around 2:1
@@tastyliveshow thanks, I've started recently and have had trouble getting filled. Risking around 70 to make 30 seems reasonable.
@@kristiyangerasimov6708 go wider
can I sell a dynamic iron condor for 45 DTE and still collect 50% credit
IT depends on the setup, but with dynamic iron condors we typically sell the 20 delta option and buy the 10 delta option, which is too far OTM to collect 50% generally.
@@tastyliveshow what about 10 and 10 delta for both sides?
Also, how do you even get into this position? Your going to be hard pressed to sell short any option that is out of the money. And the further out of the money you go the harder it gets.
#nailedit
Market like oil where underlying can't go to zero. Then comes April 2020 🤣
Please... tell me more about the hyped up nudes.
Oil going to zero lol