How to leg into a no loss Iron condor
- Thread starter tos_user
- Start date
Can you clarify what it is you wish to do/know? This picture is from an OptionVue position which has been altered by previous trades that are not shown. (Note there is NO risk shown! Profits were previously made!) This position picture is of an IC with a Call Ratio Backspread above the market.
lol I know how you can do that
Thanks for your responses.
I am trying to understand the steps that taken by the trader who constructed this position.
For example, did he bought a put credit spread first, and once the price moved up or down then he bought a call credit spread and etc.
How he legged into this position.
What are the sequences of trades to build this position.
Hope this make sense to you.
I am trying to understand the steps that taken by the trader who constructed this position.
For example, did he bought a put credit spread first, and once the price moved up or down then he bought a call credit spread and etc.
How he legged into this position.
What are the sequences of trades to build this position.
Hope this make sense to you.
Ah! There is insufficient information provided to understand what the original provider of that data had done prior to that point in time, and what his goals were. I would be guessing without more information.
you can only create it by already having a profit
I have a dollar and twenty eight cents in my pocket.
How did I get to that sum?
(There are as many different ways as there are whole numbers.)
As you can tell, the only thing known are the long and short strikes.
If the market shifted from one side to the opposite?
If the market parked in the middle and the sides were brought in after big theta burn?
No way to tell.
How did I get to that sum?
(There are as many different ways as there are whole numbers.)
As you can tell, the only thing known are the long and short strikes.
If the market shifted from one side to the opposite?
If the market parked in the middle and the sides were brought in after big theta burn?
No way to tell.
In other words, legging one of the vertical spreads. Besides, it's a bit more fun and challenging.
For starters, you don't "buy" a credit spread. That said, you can ponder the idea of reducing risk by legging into spreads until the cows come home, but in the end, you will discover that you put on a directional trade at the jump and that it is quite possible, should you be lucky enough to have the trade go your way, that you could just close out the original position for a profit as opposed to further legging into something more complex (but perhaps "risk free").