iron condor

osho67 · Jan 19, 2012

I mainly trade iron condors on ETFs like SPY, IWM, QQQQ. and DIA with 2 points between buy and sell . Is there still a probability that I can blow my a/c? Normally I leave 50% cash unused in the a/c .

Thanks for guidance.

spindr0 · Jan 19, 2012

If the worst case scenario maximum loss on your existing positions exceeds your account value, do you think it's possible to blow out your account?

osho67 · Jan 26, 2012

Quote from spindr0:

If the worst case scenario maximum loss on your existing positions exceeds your account value, do you think it's possible to blow out your account?

Is Iron Condor comparatively the safest strategy ? Is there another strategy which will come near to this or better than this for premium income? Commision costs are high but overall it is acceptable. Some guidance mush appreciated. Thanks.

ForexForex · Jan 26, 2012

Quote from osho67:
Is Iron Condor comparatively the safest strategy ?

Yes

Quote from osho67:
Is there another strategy which will come near to this or better than this for premium income?

No

Maverick74 · Jan 26, 2012

Quote from osho67:

I mainly trade iron condors on ETFs like SPY, IWM, QQQQ. and DIA with 2 points between buy and sell . Is there still a probability that I can blow my a/c? Normally I leave 50% cash unused in the a/c .

Thanks for guidance.

Probability the riskiest strategy in the casino.

spindr0 · Jan 26, 2012

Eat like a bird, sh*t like an elephant.

galvinlee888 · Jan 27, 2012

Quote from osho67:

I mainly trade iron condors on ETFs like SPY, IWM, QQQQ. and DIA with 2 points between buy and sell . Is there still a probability that I can blow my a/c? Normally I leave 50% cash unused in the a/c .

Thanks for guidance.

My 2 cents,

Iron Condor is the riskiest strategy among others option strategy, The probability that you may get "maximum loss" for several months (super bull or super bear market) is significant high and this will kill your account immediately. It is aka you get a red for 9 times in roulette (seemed unlikely in statistic but it happen so frequent).

One of the worst part in option trading is the slippage and commission, you can't win in long term except you have a super edge (exist but you have to find by your own).

ForexForex · Jan 27, 2012

Quote from galvinlee888:

My 2 cents,

Iron Condor is the riskiest strategy among others option strategy, The probability that you may get "maximum loss" for several months (super bull or super bear market) is significant high and this will kill your account immediately. It is aka you get a red for 9 times in roulette (seemed unlikely in statistic but it happen so frequent).

One of the worst part in option trading is the slippage and commission, you can't win in long term except you have a super edge (exist but you have to find by your own).

So what is a less risky alternative to the Iron Condor for premium income?

eldorado1 · Jan 27, 2012

Quote from galvinlee888:

My 2 cents,

Iron Condor is the riskiest strategy among others option strategy, The probability that you may get "maximum loss" for several months (super bull or super bear market) is significant high and this will kill your account immediately. It is aka you get a red for 9 times in roulette (seemed unlikely in statistic but it happen so frequent).

One of the worst part in option trading is the slippage and commission, you can't win in long term except you have a super edge (exist but you have to find by your own).

Maybe you just don't know to trade them (it's OK, I don't know to trade Straddles, Strangles, Calendars and stocks - funny thing is I thought Calendars are better then Condors.. Yeah Right, not for me!! ) Maximum risk don't have to be 5 times greater then max reward. Mine are not more then 1.5 times larger.
Plus, you must manage the trade responsibly and exit in time and you won't blow up the account (if you can't do that you shouldn't trade at all).
Maybe you are right about the need of a super edge to make it in this business, but I would start by not taking your opinion about Condors seriously.

TigerBalm · Jan 27, 2012

Eat like a Butterfly, shit like an Iron Condor.

ICs are the litmus test by which traders recognize gamblers. That, and doubling down into losses.