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So a reverse iron condor you basically long the gut(otm strangle) and short the wings(even a further otm stangle). I dont think that's a very good play in this environment, you are long vega (with vix at a record) and buying theta. Where as iron condor is the opposite, you are short vega...

then you are better off just buying some binary option to hedge against the sun exploding. I will be happy to take the other side :)

mark, when do you close out the iron condor as stop loss? Based on your method, you write otm iron condors that are few months out and take the profit ~1month before expiration and gamma risk become too high. Lets say you wrote an IC 3months out, then 2 weeks later the underlying hit your...

I know your situation is slightly different, but just in general: 1) It's a very difficult to trade options as a retail when market makes large moves. For example the es option market is pretty much nonexist when the sp500 was gapping down 50+ pts, the bid/ask spread was all in the 10-40pt...

wait, so all your long term investments are in penny stocks? :p

I have started converting 40% of cash that was sitting in my IRA into stocks today. I am <30, so wont be needing this money for a long time. I focused on 3 sectors: 1) oil/solar: Usually oil drops before election and runs up after election. However we are in a strange situation right now...

where have you been?

lol i love rogers, but why does he ALWAYS sound so pissed everytime i see him on tv

the market we are in now, if the surprise is negative the stock will gap down, if the surprise is positive the stock will move a little to the upside, but the chance of a huge gap to the upside is limited unless we have some truely blowout news. If i were to play this(but i am not), i will...

Mark, it's true if you write reverse calendar spread the loss from IV gap is unlimited. But the IV did not gap yesterday, it actually crashed, also i only opened the position because IV was already at 60+. The other thing is when IV gaps, the underlying usually makes a large movement as well...

woke up and my excess liq is back at $2500, i closed out more at around -3pt each to bring it up to $10k. I will never let it fall below $10k going forward to avoid this nightmare with IB auto liquidation engine again. The problem with IB isnt their auto liquidation mentality but the lack...

same thing happened to me today. The only position i have in my account is es reverse calender spread. I calculated exactly how much loss i will take from theta and vega and had a $5000 excess liquidity. Then when i come home today from work, it freaking liquidated 2 of my contracts at...

wrote the positon atm for 35pt credit: short JUN 960C long DEC 960C net vega -1.4, theta 0.3, stop loss around mid nov and/or if vix explodes from the current 60 (will evaluate)

dont get too carried away guys. volume is low, earning season starting, options expiration week, whipsaw wed incoming.

this position would be profitable today, iv crush+gap

OP, this is not worth it. You are far better off just buy the stock. buy when it hits 2-2.5, sell when it hits 3.5-4, you can do that back and forth all year long until the etfc book is cleaned.

I am not really try to pick a bottom. My last reverse calendar spread i sold at 1080 ended up in profit because the market continued to gap down despite the position is short vega. Also even if the market does not move and i take on theta decay, the IV should come down. Basically my...

i rather do reverse calendar spread than just long the otm calls. 2 profit characteristics of a reverse calendar spread 1) drop in IV 2) large move on either direction from atm strike. both seems well suited for the current market. The tricky part is to have the patience to find a good...

well at least we closed above the 870 level....

what u say makes sense, but i just dont see how the buyers would come into the market later afternoon and start buying to hold over the weekend. Logic indicates it would be the opposite, but we are not in a logical state right now. anything is possible