You are better off risking that $15.00 assuming you got options trading approval to buy calls and puts to just put that $15.00 on an out of the money call option for instance just before earnings announcement. If you get real lucky, you might end up with a couple of hundred dollars. If not, go get a job! Losing $15.00 is not the end of the world!
Generate income through options
- Thread starter ssp729
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You are better off risking that $15.00 assuming you got options trading approval to buy calls and puts to just put that $15.00 on an out of the money call option for instance just before earnings announcement. If you get real lucky, you might end up with a couple of hundred dollars. If not, go get a job! Losing $15.00 is not the end of the world!
Nobody has used The Magic Word yet.
The magic word is Expectancy.
The numbers above hold for $5 spreads within the last week of expiration
or for half of $10 spreads, bought back after 5 trading days, or for..... ad nauseum.
It gets even worse if you consider that you might likely roll/exit when the market touches your short strike -- which happens at roughly twice the rate of P(HIT). OUCH!
So, success here is not found in a book on the basic mechanics, but on advantageous entry -- *stalking* the market. That will push out your condor's legs to best advantage: sell on extremes.
The magic word is Expectancy.
The numbers above hold for $5 spreads within the last week of expiration
or for half of $10 spreads, bought back after 5 trading days, or for..... ad nauseum.
It gets even worse if you consider that you might likely roll/exit when the market touches your short strike -- which happens at roughly twice the rate of P(HIT). OUCH!
So, success here is not found in a book on the basic mechanics, but on advantageous entry -- *stalking* the market. That will push out your condor's legs to best advantage: sell on extremes.
When you sell options, you receive cash aka option premiums in your account. IB will pay you interest (higher than most banks).
in my experience, no unless you trade the spreads small enough to be able to delta hedge with your available capital. i've been trading iron condors/flies for coming up on two years and it hasn't gone well. this straight-up market puts your call spreads DITM and leaves your put spreads way OTM but still retaining enough value due to skew that closing them to roll the whole position out is expensive.
i'd wait until the bull calms down a bit or you can adequately delta hedge. don't be like me
i'd wait until the bull calms down a bit or you can adequately delta hedge. don't be like me
Credit spreads are dangerous unless you know what you are doing.
Look at Kirk on optionaloha he does a lot of credit spreads.
You are better to start with cheap call and put spreads, strangles on earnings, cheap ITM calls on Friday weeklies and see how you get on.
Sign up for thinkorswim and learn the platform, will take a while but paper trade first initial you get used to it.
Look at Kirk on optionaloha he does a lot of credit spreads.
You are better to start with cheap call and put spreads, strangles on earnings, cheap ITM calls on Friday weeklies and see how you get on.
Sign up for thinkorswim and learn the platform, will take a while but paper trade first initial you get used to it.