High Risk Iron Condors – Trading Options

Posted by on 16 November, 2011
11 Comments
This item was filled under [ Option Trading ]

www.sjoptions.com presents a high risk Iron Condor strategy to make the public aware of the dangers of this option trading technique.
Video Rating: 3 / 5

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11 Comments on “High Risk Iron Condors – Trading Options”

  • sjoptions
    16 November, 2011, 1:57

    @rameshjain2009 Again, there are numerous ways to repair a badly constructed trade, but why take the risk? In today’s market we simply do not use this strategy. It was meant for a stable market which we haven’t seen for years.

  • sjoptions
    16 November, 2011, 1:57

    @rameshjain2009 There really is an unlimited number of ways to work with Condors and repair them. Most option traders try to learn the secret to adjusting them for many years. However, we find the best adjustments are made to this trade before we ever begin it. We personally do not trade this strategy or recommend it either.

  • rameshjain2009
    16 November, 2011, 1:58

    We should not keep the long strangle price too far. Buying Calls and Puts strike price should not be too far from the strike price we shorted Calls and Puts.
    Only inexperienced will keep the protection strike price too far

    Protection level should be 3 to 5 % and It is also possible to repair the strategy by buying ONE ATM CALL and Selling TWO OTM call . Vice Versa can also be done buying one atm put and selling two otm. put ,, Please reply.

  • rameshjain2009
    16 November, 2011, 2:24

    We should not keep the long strangle price too far. Buying Calls and Puts strike price should not be too far from the strike price we shorted Calls and Puts.
    Only inexperienced will keep the protection strike price too far

    Protection level should be 3 to 5 % and It is also possible to repair the strategy by buying one ATM CALL and Selling two out of the money call . Vice Versa can also be done, Please reply.

  • sjoptions
    16 November, 2011, 2:59

    @cansmakit Good advice except for one thing. What happens when the market drops 10% intraday and Think or Swim servers go down? If you trade these long enough, the embedded risk will get you sooner or later. Good luck to you, but I personally don’t do this risky trade anymore.

  • cansmakit
    16 November, 2011, 3:39

    @sjoptions
    Iron condors are excellent ways to invest. Keep your contracts low, keep total money risked and maximum profit potential close together. Never invest large amounts of money for a low pofit potential as this example illustrates. Get in 50 – 40 days before expiry. Get out 10-20 days before expiry. Do your technical analysis so you have some idea of where the market is going. You can adjust Iron condors profitably and be sure that you learn to ajust these as this is crucial.

  • sjoptions
    16 November, 2011, 4:14

    Actually, we do like Condors, but we don’t do the typical Condors that 99% of traders do. However, Condors may not be the best option strategy for all markets. It’s good to learn other types of spreads which are not quite so negative Vega.

  • alexchervet
    16 November, 2011, 4:41

    Ok, so you don’t like condors. What do you recommend instead?

  • NYredwhiteandblue
    16 November, 2011, 4:47

    You should adjust the position if it gets too close to either side, Cant just set it and forget it..

  • klayed
    16 November, 2011, 5:21

    very good video
    better than 95% other stuff on internet

  • lightfoot500
    16 November, 2011, 5:56

    thanks for the video. good advice.
    iron condor good for a sideways market.
    which may not be bad since we may be entering into a sideways market for some time.
    good website

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