Recent content by IgorVI

Glad this helps. I use alerts to notify me to 'when' adjust my Iron Condors as well as credit spreads.

Setting alerts doenst solve the 'stop loss' issue, but it does allow you to walk away from having to sit there and watch price all day

If you're using TOS, you can set alerts to notify you when certain condition is met. It could be MID price of the options you're trading or price level where underlying is trading at. Let's say you're long AAPL FEB 170C at 6.50 Let's assume you're willing to risk 3.00 before stopping out. You...

With iron condors, max loss occurs when underlying expires outside of both long and short strike of either spread. If you sold an IC for $1 and your margin or risk is $4 then 4 is the max absolute loss for the trade. Hope this helps.

If you bought 100 shares of stock at $50 and put up 100% or $5K for it and then sold a call against it for $1 with 30 days to expiry, your annualized return would be premium over margin, divided by number of days held, multiplied by 365. I think white it's very unlikely that the stock you bought...

You can hedge SPX put with SPX calls according to their deltas

If you're buying ITM options then YES there's intrinsic value so it has a portion of underlying, but if you're buying an OTM option that has nothing but time premium and that option is overprice already that's bad bet. It's better to set a mental stop, if ABC goes to X then exit the option...

The way I set a stop loss is simple. First you need to determine how much are you willing to lose. After you figure that number out look at the deltas of the option you're looking to buy or sell. Now divide your loss amount by deltas, that's how many points underlying can move against you before...