[QUESTION] - Options trading for INCOME

[ironchef]

I'll butterfly short straddles, and condor short strangles....to minimize risk.

I understand but do you butterflied more or condor more?

 

[VolSkewTrader]

I understand but do you butterflied more or condor more?

Prefer strangles over straddles to get wider vega exposure on the smile...so condors more often.

 

[luckyfnlou]

Prefer strangles over straddles to get wider vega exposure on the smile...so condors more often.

When trading the spx do you prefer to put the trade on all at once or the short strangle/straddle first then the wings for better fills or via spreads or some other way? Just curious how others enter their condors/flys.

Thanks for sharing!

 

[ironchef]

Prefer strangles over straddles to get wider vega exposure on the smile...so condors more often.

Thanks.

 

[VolSkewTrader]

When trading the spx do you prefer to put the trade on all at once or the short strangle/straddle first then the wings for better fills or via spreads or some other way? Just curious how others enter their condors/flys.

Thanks for sharing!

Depends. If curve is unusually flat I'll quote the fly or condor as a spread to lock in the "cheap" wings. If not, then I'll prefer to leg into it. Sell strangle/straddle on the open or during a temporary surge in IV, and then buy the outer legs/wings later when vol comes off.

I'll do the opposite (short fly/condor) if wings are exceptionally steep, vol is low, and I think we're going to move out of the range.

 

[syammondsandrew]

Options are good for investment purposes. Options trading is much of a flexible nature and one can definitely earn good money from it. You can find out ways from where you can learn options trading and master the art of it.