Iron Condors ? how many should we have

Quote from silver217:

I am in more than just this Condor. I don't like weeklies and I don't see
the advantage of trading NDX plus RUT, is highly correlated I think.

Question is how big is the cash reserve to avoid a wipe-out.

Also I have very OTM puts for protection, but thats another subject.
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Have you checked the correlation between RUT and NDX? Today NDX is up .36 while RUT is down 1.70. I haven't checked into it, and it's only one data point (could be the AAPL effect on the NDX today). Do you have any numbers?

Almost everything seems highly correlated these days.
 
Quote from silver217:



Strategy is to buy Iron Condors.
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With the Buy 930 CALLs, and Sell 920 CALLs.


Your selling Iron Comdors. Short vs. Long.
 
Quote from silver217:

I am in more than just this Condor. I don't like weeklies and I don't see
the advantage of trading NDX plus RUT, is highly correlated I think.

Question is how big is the cash reserve to avoid a wipe-out.

Also I have very OTM puts for protection, but thats another subject.
More...
I did not trade weeklies at first. After paper trading them for a while I saw little difference between the weekly and the last week of a monthly with respect to trading credit spreads.

I have benefited several times by combining RUT with either the NDX or the SPX. One was overrun and the other was not.

My reserve is calculated to accommodate having to bail on all the spreads allocated to the monthly buckets for one time frame. I trade fewer weeklies than monthlies. Bailing on a spread requires reserves. Bailing on an Iron Condor does not.

I'm very interested in your insurance methodology if you would care to share it. Some use OTM PUTS in the same series, some in a farther out series. I'm still trying to add this method to my trading strategy.
 
Quote from HowardCohodas:

You might want to research that.
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It's debatable. I side with stoic - net short premium = short condor.

Probably the majority would say otherwise. I don't get that. You sell 2 credit spreads and it's a long condor. OK. Somebody screwed up the terminology and it stuck.
 
Quote from Eliot Hosewater:

Have you checked the correlation between RUT and NDX? Today NDX is up .36 while RUT is down 1.70. I haven't checked into it, and it's only one data point (could be the AAPL effect on the NDX today). Do you have any numbers?

Almost everything seems highly correlated these days.
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While NDX and RUT, and SPX for that matter are highly correlated, they are not perfectly correlated so having positions in more than one index definitely has it's benefits.
 
Quote from donnap:

It's debatable. I side with stoic - net short premium = short condor.

Probably the majority would say otherwise. I don't get that. You sell 2 credit spreads and it's a long condor. OK. Somebody screwed up the terminology and it stuck.
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For one thing the OP is full of typos - two puts instead of calls, 930/920 reversed.

As far why it's "long", probably because it has the same P/L and the long put or call condor.
 
Quote from donnap:

It's debatable. I side with stoic - net short premium = short condor.

Probably the majority would say otherwise. I don't get that. You sell 2 credit spreads and it's a long condor. OK. Somebody screwed up the terminology and it stuck.
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Add my vote to short iron condor. If my memory serves me right, we had a debate on this matter here a few years ago. It didn't get us anywhere though...
 
Quote from MTE:

Add my vote to short iron condor. If my memory serves me right, we had a debate on this matter here a few years ago. It didn't get us anywhere though...
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I agree. After all, you're short the bear call spread, and you're short the bull put spread, so it seems peculiar to say that the combination of the two is long.
 
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