Iron Condor candidates

jimmyjazz said:
So you're proposing a bear call credit spread and a short put? What happens if TSLA spikes above $300? You lose a lot on the spread and don't make much on the put, right?
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1) Let's remember that, for Pekelo, TSLA numbers are illustrative.
2) Spike: for the example, TSLA has been camped out b/w $185 and $235 for quite a while, and only recently made it back above $240. But it's $268 as I write this, so a "spike" to $300 would be in keeping with a market-wide, *famous* short getting the schiezze squeezed up/out of it.
3) Spike on a call-side: "BTDT"..... Hence, no naked calls -- damage is capped at $5.
4) Going forward?? "POSTPONE" -- buy back, roll up/OUT[‼], hunt for a put to use the call-consumed margin a second time. (Going 20¢ five times pays for a shitty $1 top-side position, without too much exposure to a flop-drop.)
 
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I'm seeing a $10 spread on the call side. Regardless, I'm not sure I understand what you're saying on (3). Are you talking about a spike in price up or down? I assume BTDT is "buy the damn dip" (but maybe not because that would be BTDD). Can you clarify?
 
jimmyjazz said:
What happens if TSLA spikes above $300? You lose a lot on the spread and don't make much on the put, right?
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And that would be different using an IC how? Actually I lose less on my version because I got more, 2 bucks vs. 1.59. If you can adjust IC so can you a vertical call.

Yes the call side was $10 wide, so max. loss is capped and yes, TSLA is just an example. The point of the illustration is: why waste money on the put buy leg of the IC, when it might be a good buy for that particular stock.
 
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jimmyjazz said:
I'm seeing a $10 spread on the call side. Regardless, I'm not sure I understand what you're saying on (3). Are you talking about a spike in price up or down? I assume BTDT is "buy the damn dip" (but maybe not because that would be BTDD). Can you clarify?
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Heh. "Sorrrr-ryyyyyy" Busy day, here.....
So then!
"BTDT" 'is what the kids say' when they've Been There, Done That.
If you didn't get it, and you're younger than me, that means that my New-Fangled Slang is SO OLD, it's actually new AGAIN. Ohmigawd. That is like, SO sad.

So, FWIW and all that, I just bought back my Feb10 SPX 2310/2315s for 75¢ this morning (sold 'em for 45¢, missed buying 'em back this morning for 20¢ -- I thought I had all day...), so I did (or am ATTEMPTING to do) a split/roll -- sold Feb13 SPX 2325/2330s for 35¢, and am attempting to sell the put side (2290/2285) for 35¢-45¢.... but no tickles. I don't want anything else for tomorrow (2245s not worth buying back, and nothing above I'd care to get into). But, this topside pinch is similar to what we've story-boarded for TSLA -- so I guess I'd say, "It works."
 
Pekelo said:
OK, another idea. I would pick let's say 4-5 stocks that I wouldn't mind to own. Then instead of selling IC on them, I sell a vertical on the call side and a cash secured put on the put side.
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I guess I have just rediscovered TT's Jade Lizard, what is exactly the same strategy:

https://www.tastytrade.com/tt/learn/jade-lizard

Setup:
- Sell OTM Put
- Sell OTM Vertical Call Spread

Although this is an important piece:

"When set up correctly, we have no risk to the upside."
 
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