Comments on: Iron Condor Spread Mini Course Part Three http://optiongenius.com/blog/iron-condor-spread-mini-course-part-three/ The Option Genius Blog Tue, 15 May 2012 16:09:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Genius http://optiongenius.com/blog/iron-condor-spread-mini-course-part-three/comment-page-1/#comment-994 Genius Tue, 28 Sep 2010 19:43:28 +0000 http://optiongenius.com/blog/?p=341#comment-994 If I were to add a put or a call it would be to reduce the deltas of the trade. That way I can figure out exactly how many and of what strike to buy. I would use put protection as soon as I entered a trade if I felt that the markets were trending lower. If I were to add a put or a call it would be to reduce the deltas of the trade. That way I can figure out exactly how many and of what strike to buy.

I would use put protection as soon as I entered a trade if I felt that the markets were trending lower.

]]> By: Genius http://optiongenius.com/blog/iron-condor-spread-mini-course-part-three/comment-page-1/#comment-849 Genius Fri, 20 Aug 2010 16:33:27 +0000 http://optiongenius.com/blog/?p=341#comment-849 Sometimes I will. The main reason is to act as insurance when the underlying is not behaving properly. Especially when it is moving very quickly in one direction, rolling might not be the best option. In that case, buying a long option cuts your deltas down and that flattens the amount you can lose in the short term if the underlying keeps moving. You have to balance the cost of the insurance vs how much you are going to make in the trade. Spending up to 10% of your credit on insurance is not a bad idea. Especially when there is a risk of a large drop in the market. Some traders add the insurance when they get into the trade, I like to add it if needed when the trade is not going my way. Sometimes I will. The main reason is to act as insurance when the underlying is not behaving properly. Especially when it is moving very quickly in one direction, rolling might not be the best option. In that case, buying a long option cuts your deltas down and that flattens the amount you can lose in the short term if the underlying keeps moving. You have to balance the cost of the insurance vs how much you are going to make in the trade. Spending up to 10% of your credit on insurance is not a bad idea. Especially when there is a risk of a large drop in the market. Some traders add the insurance when they get into the trade, I like to add it if needed when the trade is not going my way.

]]> By: Jason Wingfield http://optiongenius.com/blog/iron-condor-spread-mini-course-part-three/comment-page-1/#comment-837 Jason Wingfield Wed, 18 Aug 2010 22:14:50 +0000 http://optiongenius.com/blog/?p=341#comment-837 Do you actively use put protection on all, or most of your trades? Does it cut into profits much? Would you recommend buying puts below your condor "box" - since they are just for catastrophic protection and you want to minimize their cost? Do you actively use put protection on all, or most of your trades? Does it cut into profits much?

Would you recommend buying puts below your condor “box” – since they are just for catastrophic protection and you want to minimize their cost?

]]> By: Genius http://optiongenius.com/blog/iron-condor-spread-mini-course-part-three/comment-page-1/#comment-770 Genius Thu, 29 Jul 2010 19:46:45 +0000 http://optiongenius.com/blog/?p=341#comment-770 You got it! You got it!

]]> By: Jim Thelen http://optiongenius.com/blog/iron-condor-spread-mini-course-part-three/comment-page-1/#comment-766 Jim Thelen Thu, 29 Jul 2010 19:26:47 +0000 http://optiongenius.com/blog/?p=341#comment-766 Is there a part 4 coming? You can talk about timing and how to determine the probability of success. Is there a part 4 coming? You can talk about timing and how to determine the probability of success.

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