90% probability iron condors

[Guest]

What do you all think about 90% iron condors? I've had success with this strategy but the risk is always a fast moving market. This is part of the reason why I like Kim's trades so much is they can diversify a strategy like this.

Edited July 23, 2012 by Jesse

[Guest]

It's a great strategy 90% of the time, question is how you can manage you losses the 10% of the time it doesnt work. Risk management and allocation are key. The problem is that you only get a relatively small premium so if things go wrong you lose quickly and you haven't much premium to adjust strikes (but arguably if you do low delta IC's you don't intend to adjust in the 1st place)

[Guest]

I agree hero. One bad bad trade wipes out alot of gains. No offense to anyone, but I don't really like the promotion of other services. Although it's no skin off my back if folks desert SO and go elsewhere. I just find it distracting.

[Guest]

There are plenty of adjustment strategies, and yes, rarely are adjustments needed. Part of the idea is to have reserve cash available to manage a newly trending and fast moving market that moves against your position(s). Also, legging into to your condors (placing bull put spreads and bear call spreads separtely) and doing your best to enter trades after the market has already made most of its directional move helps reduces risk. If you always place a bull put spread on a strong down day and a bear call spread on a strong up day it increases your credit and helps to manage risk.

But yes, of course, 10% of the time it doesn't work. An increase in IV and a fast moving market are the enemy of high probability IC's but the friend of the earnings play we do here. Kim, I'm looking forward to hearing your thoughts on this subject.

Edited July 23, 2012 by Jesse

[Guest]

I agree, let's discuss the strategies and leave the names of services out.

[Guest]

Personally, I don't see good services, with differing trading strategies as competitive. No matter how successful SO gets, it will still only be for a portion of a portfolio. Unless SO grows into a more diverse role of overall portfolio diversification, we all need additional investment strategies that are complementary to SO. I feel fortunate to have found an honest service like SO and would join others of similar quality if I knew about them. That said, it is Kim's site, so his call. (Optional pun intended.)