iron condor

ForexForex · Jan 31, 2012

Quote from Options_Noob:

example:

+2 OTM Puts
-1 ATM Put
-1 ATM Call
+2 OTM Calls

Yes I'm aware of the concept. How about posting a "real life example", such as stock, option strikes and quotes.

spindr0 · Jan 31, 2012

Quote from ForexForex:

Could you post a real life example?

Sell one each of these and buy two each of those.

osho67 · Feb 1, 2012

Quote from spindr0:

Sell one each of these and buy two each of those.

Sorry -what would that do to my premium income ?

Please give an example with real prices and net profit/loss. I am really interested in this concept and I want to improve from iron condor, Thanks and much appreciated

osho67 · Feb 1, 2012

I have tried to find some information in the option books. It seems there is a difference between a butterfly and iron butterfly. With IB if I select butterfly combination it will be either all calls or all puts, How can I have a set up with calls and puts combined and execute the order as one click?

It will be really helpful if someone gave an example of short iron butterfly. Some one described it as sell a strangle and buy a sreaddle or other way round. It will involve six positions . Please clarify. I want to really try one iron butterfly today with IWM.

Thanks for any help.

atticus · Feb 1, 2012

Quote from osho67:

I have tried to find some information in the option books. It seems there is a difference between a butterfly and iron butterfly. With IB if I select butterfly combination it will be either all calls or all puts, How can I have a set up with calls and puts combined and execute the order as one click?

It will be really helpful if someone gave an example of short iron butterfly. Some one described it as sell a strangle and buy a sreaddle or other way round. It will involve six positions . Please clarify. I want to really try one iron butterfly today with IWM.

Thanks for any help.

One trades at a credit and one at a debit.

daveyc · Feb 1, 2012

Quote from osho67:

I have tried to find some information in the option books. It seems there is a difference between a butterfly and iron butterfly. With IB if I select butterfly combination it will be either all calls or all puts, How can I have a set up with calls and puts combined and execute the order as one click?

It will be really helpful if someone gave an example of short iron butterfly. Some one described it as sell a strangle and buy a sreaddle or other way round. It will involve six positions . Please clarify. I want to really try one iron butterfly today with IWM.

Thanks for any help.

yes there is a very big difference ha. if you know what a butterfly looks like, it takes a debit as noted above. just turn a butterfly upside down to know what an iron butterfly looks like, it takes a credit.

daveyc · Feb 1, 2012

i forgot to include an ex. on iwm.

march puts

-1 81
+2 79
-1 77

ps. if you can use the rut instead you will save on commissions

osho67 · Feb 1, 2012

Quote from daveyc:

i forgot to include an ex. on iwm.

march puts

-1 81
+2 79
-1 77

ps. if you can use the rut instead you will save on commissions

RUT has so wide bid and ask. How will I save money on commission? Thanks

daveyc · Feb 1, 2012

Quote from osho67:

RUT has so wide bid and ask. How will I save money on commission? Thanks

iwm is about 1/10th the size of rut. if you get mid price or better, its the same, just larger. check for the skews. compare the difference on the different underlyings and determine if you are getting a good fill.

taowave · Feb 1, 2012

i didnt read thru all of this,but some are making the IC way too complicated..

If I dont get at least 40% of the spread(distance between strikes),I dont even look at them.

I havent loked at them in a while,but if i remember correctly,the ic is just a bunch of butterflys netted out.