But if you take profit at 50%, is it possible to gain money in the long run? Example: Iron Condor 3$ wide. Credit received 1$. Closing trade with profit of 50$. This means that, to make money in a 3$ iron condor, you must WIN more than 83% of the time. And, if the broker is not commission free, considering a commission of 5$ the win rate has to be > 85% (85% only to break even!) How is possibile to make money with these numbers? There is a lot of math and logic explained in Tastytrade but I never found an answer to this simple math. Can you? Thanks so much and have a nice day.
Do these management strategies work well when laddering options? I feel committing too much time on one trade wouldn't be ideal if you're to put on a volume of positions..
You can't always roll the losing side for a credit with iron condors. If the losing side is in the money, then you would be required to pay a debit in order to roll...which is something you should not do in my opinion.
Great Video! 👍 At 5:08, When you said "Using the IVR", did you mean the difference between the IVs of the shorted and long strikes, or the short strikes' IVR alone ? For instance, for SPX, the IVR is usually low 20s, and the difference between the strikes appear to be stable。。。 what IVR should be checked as the criteria for keeping or closing an IR? 4080, 4090, 4120, 4130 for SPX as an example? Should the IVR of 4120 and 4090 be focused on, or the difference of IVs between 4120 and 4130 be focused on ? Thanks!
as much as i like this guy and his presentation I am missing concrete examples of what he is talking about. like in this video....with wide iron condors and you roll up the untested side.... you roll the whole tamale or just the short option or what?
At 3:00 when he says roll the untested side he then says (seconds later) to roll the untested put or call spread. The spread indicates both short and long.
That's intuitive. Why wait and take the risk of losing it all when, at this point, you've already earned 50% of everything you stand to win AND you can now reallocate your money to another trade and have a chance to earn more? Just take what you can and minimize your risks.
Taking your profits early increases your win rate and reduces the chance that the stock could end up moving against your position. Especially if you make 50% on the trade early, is it really worth holding on to it all the way until expiration (which may be weeks away) just to potentially squeeze out a few more bucks in profit? In my opinion, I don't think it's worth the risk.
When managing a 'tested' side, doesn't it make sense to roll that tested side and widen the profit region? Granted that will cost you money but it will widen the profit region as well.
When you roll tested side you lock up the loss on that side. Always roll with additional credit thus you should roll untested side only (or roll tested side out to get extra credit).
Wow, Jim isn't completely horrible when he's limited to six or so minutes. He should exclusively do short-form content, because when does anything longer he never gets to the point.
Out of all the iron condor management videos i've ever watched, this is is the best one. Actionable advice in the shortest amount of time.
But if you take profit at 50%, is it possible to gain money in the long run? Example: Iron Condor 3$ wide. Credit received 1$. Closing trade with profit of 50$. This means that, to make money in a 3$ iron condor, you must WIN more than 83% of the time. And, if the broker is not commission free, considering a commission of 5$ the win rate has to be > 85% (85% only to break even!) How is possibile to make money with these numbers? There is a lot of math and logic explained in Tastytrade but I never found an answer to this simple math. Can you? Thanks so much and have a nice day.
This was the exact strategy I was looking at last night on another channel, but I love the way tastytrade explains strategies best!
Fantastic insight Jim, thank you!
Audio quality is less than ideal, next time, try to turn your microphone more towards you.
Keep this up crazy market is expensive
Thanks, Jim. FYI, u may want to adjust the mic.
Thanks 4 the info Jim! ✌️
Do these management strategies work well when laddering options? I feel committing too much time on one trade wouldn't be ideal if you're to put on a volume of positions..
Enjoy videos. Saw you have phd from Memphis! Go tigers.
I like the new intro video
cant find Butterfly's would be a great to see a vid.on Butterflys
if the underlying is between my long strikes and iv rank goes down isnt that a good thing?
Excellent Dr Jim !
Why would you roll the untested side when it is making you money - surely you would want to roll the losing side?
You can't always roll the losing side for a credit with iron condors. If the losing side is in the money, then you would be required to pay a debit in order to roll...which is something you should not do in my opinion.
Hard to find a non directional trade and good volatility to make the premiums worth while.
Great Video! 👍 At 5:08, When you said "Using the IVR", did you mean the difference between the IVs of the shorted and long strikes, or
the short strikes' IVR alone ? For instance, for SPX, the IVR is usually low 20s, and the difference between the strikes appear to be stable。。。 what IVR should be checked as the criteria for keeping or closing an IR? 4080, 4090, 4120, 4130 for SPX as an example?
Should the IVR of 4120 and 4090 be focused on, or the difference of IVs between 4120 and 4130 be focused on ? Thanks!
nobody knows bro, it's all a mystery
He's refering to the Implied Volatility Rank (IVR), which is a measure given on the Tastyworks platform ;-)
I think he means the IVR for that underlying.
Can somebody link a video explaining an Iron condor?
as much as i like this guy and his presentation I am missing concrete examples of what he is talking about. like in this video....with wide iron condors and you roll up the untested side.... you roll the whole tamale or just the short option or what?
At 3:00 when he says roll the untested side he then says (seconds later) to roll the untested put or call spread. The spread indicates both short and long.
You are rolling the spread
BS
indeed really shitty explanation
I will not save this video, this is a really bad video
You can also convert it into a Iron Fly
Why close it when you have made 50% of the value? That part seems arbitrary. What’s the math behind that showing why it’s the right choice? Thanks
That's intuitive. Why wait and take the risk of losing it all when, at this point, you've already earned 50% of everything you stand to win AND you can now reallocate your money to another trade and have a chance to earn more? Just take what you can and minimize your risks.
Here's the math
ua-cam.com/video/IrM1V2qMJgA/v-deo.html
Why would you close it at 50%? if you it may stay OTM just curious
Taking your profits early increases your win rate and reduces the chance that the stock could end up moving against your position. Especially if you make 50% on the trade early, is it really worth holding on to it all the way until expiration (which may be weeks away) just to potentially squeeze out a few more bucks in profit? In my opinion, I don't think it's worth the risk.
Heres why... ua-cam.com/video/IrM1V2qMJgA/v-deo.html
When managing a 'tested' side, doesn't it make sense to roll that tested side and widen the profit region? Granted that will cost you money but it will widen the profit region as well.
When you roll tested side you lock up the loss on that side. Always roll with additional credit thus you should roll untested side only (or roll tested side out to get extra credit).
Thanks, Concise easy to follow advise.
This is really helpful thank you.
Can you go into extra details for shorts strangles
ua-cam.com/video/bRnh1phWaDk/v-deo.html here is his short strangle video
Wow, Jim isn't completely horrible when he's limited to six or so minutes. He should exclusively do short-form content, because when does anything longer he never gets to the point.
So 1/3 of spread distance + 1/3 of spread distance means you are looking for 2/3 of the max distance to be collected.