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Iron condor + long put Condor + short strangle As the others posted, what's in a name. The key is whether the exchanges recognise it as a strategy because that can have beneficial effects on your margin requirements. That is not the case here so whilst intellectually stimulating it doesn't...

This question is only complicated because your criteria contain variables. In essence your return is calculated after the fact as follows: net profit/loss ============== x 100= P% profit Capital Employed Now your Capital Employed depends on: 1) Your margin arrangements with your broker 2) The...

What happened early February was not a black swan event. It was a simple market correction of which there are a couple per year on average.

@ OP I am not the right person for the tax implications. My idea to keep it simple by selling naked calls was based on the fact that surely you can borrow the margin very cheaply with your vested options. Whilst Ironchef is right that the premium will only cover part of a drawdown in the case of...

If you need to offload 25% at current prices in 2019 why dont you just sell 2019 calls ATM?

Reading the articles, the best advice in it is : whatever you do never overdimension a trade. It sounds easy but in practice leverage can creep up gradually particularly if the market went up. As it is a certainty that no single market strategy will ALWAYS win people suffer reversals. In my home...

If that were the reasoning it would be incorrect, the ones who will be scalped by the tariffs are domestic manufacturers as steel/aluminium producers will raise prices to just below the new level set by tariffs. Large corporations sometimes have alternatives and are more likely to have long term...

Well you raise an interesting issue as to whether there is a rule of thumb kind of thing that could help you further filter your directional bets, i.e. where you have worse expectancy of gamma overcoming theta. In my original response I started working out a possible method that takes in the...

Just for the record, this isn't true - volatility changes have a major impact here. Furthermore at low volatility gamma would be stable across all strike prices whereas it would be high ATM if volatility is high and lower ITM or OTM. It has a huge impact. For the rest of the response I am...

The question isnt whether you can make that return, sure you can. The question is whether you can make that return consistently without taking consistently outrageous risks. The answer to that is no.

Ok I will take your word for it - do you have an upper limit where you bail as well, say +50%?

Maybe I dont get what you are saying here at all if you take in $0.02 on a spread for a total of 1200$ premium you were in for 600 options? If we take the oil price at 63$ you were trading the equivalent of 3.7M$ of the underlying which is way more than you should do with an account your size...

@OP Kudos for posting about a loss - its good practice to be able to speak of your mistakes as well the big winners you land. If its any consolation for you, I had an Iron Condor on the index open in that period. On Friday 2nd February when I saw how the market tanked and the index came close...

We have all seen them, those SPY options trading at dimes a few days before expiry that end up 5$ in the money...If only... So yeah hypothetically you can overcome theta easily enough but the 60% w/l ratio is not enough. In the cases you refer to your loss is likely to be 100% every time you...

This means nothing, the vast majority of options is closed before expiry. You can totally make money on an option that eventually expires worthless just like you can lose money on an option that end up in the plus. The metric about options expiring worthless doesnt mean anything unless all the...

:thumbsup:

The strategy spread'em refers to is called a collar - it basically covers you for the downside at the cost of giving up the upside over 30$. As others have stated the timing of your strategy is rather important, if your view is for the next week it requires a different approach then if it is...

Well done - despite moving out of the market I took a step back yesterday but am still well up for the year. When the portfolio was moving up 10K a day, it wasnt surprising to take a 25K loss on a big down day.

Well premium sellers made a bundle - particularly on Amazon if they had the guts to go short. Depending a little on where you got in and out it could be break even on GOOGL or AAPL but overall you should be up in the region of 180$

The article makes the usual mistake of observing a correlation and then drawing the conclusion that there is cause and effect at play. The chipmakers are just churning out stuff like there is no tomorrow, all of them are stretched regarding capacity. The equipment makers have 2 year waiting...