A good index option strategy?

[tomk96]

look at the range of the market and at how wide your condors are. that's what makes money. if you started this 2 years ago and didn't get run over, i'd be impressed.

it will come down to how often it the market goes through your strikes and how you deal with with moving your position vs. just letting everything go until expiration.

 

[newguy05]

Quote from deltastrike:



2. I didn't lose any money last week. I sold my IC's particularly far out of the money due to the volatility.

Because the blackswan didnt really materialize at least not in the us market. Look at the indices during the lehman days and early 09. What will happen if one of those week occur again? will you lose 100%, 50%, 25%?

Also in demo you can just hold it until end of week, but in real account will you have enough cash to avoid a liquidation in midweek before a bounce back could occur?

It's not that difficult to "backtest" your set-and-forget strategies, look at the historical weekly underlying prices and find the max price range, then you can approx your max loss. See if you can handle that max loss or will your account blowup.

It's been pretty much discussed to death why blindly selling otm spread/ic will not work.