Reverse Iron Condors

newwurldmn · Mar 11, 2012

Quote from atticus:

That's short the natural, but the point was that it's a condor. Literature on a "short" condor?

Yeah. I figure he's referring to all the "papers" written by those pundit/educational websites.

spindr0 · Mar 11, 2012

Quote from MBfromLA:

If the probability of each trade placed is approximately 90%, and you make in average of 40% on each trade, and each trade take maximum of 4 months, then you should be able to average 100-120% a year, with a decent account size, 100-200k, that's a not bad living.

LOLOL... Averaging 100-120% a year? Uh huh.

This trade has about a 25% chance of incurring a total loss.

opt789 · Mar 11, 2012

Quote from spindr0:

LOLOL... Averaging 100-120% a year? Uh huh.

This trade has about a 25% chance of incurring a total loss.

Doesnât know what to call his IC, makes 100% a year with 90% probability, and says Atticus doesnât know what he is talking about. Three strikes?

spindr0 · Mar 11, 2012

Quote from newwurldmn:

I want to trade a reverse short stock.

You should look into triple reverse inverse short leveraged ETF's

jkgraham · Mar 11, 2012

Quote from opt789:

Then learn how to trade, a pursuit at which most fail, then spend a couple years learning everything you can about options. You are doing yourself a huge disservice by focusing on one or two specific strategies, then trying to learn how to trade them. As I stated ICs can be formed in almost unlimited ways and they will each have their own characteristics and profiles. Understand options, vol (implied, historical, daily changes, shape of the curve/smile/smirk/surface), and what market makers do and why they do it, and then worry about specific strategies.

I'm not focused on one specific strategy but this thread is. Why would jump to the conclussion that this strategy is all I do or study?

jkgraham · Mar 11, 2012

Quote from spindr0:

LOLOL... Averaging 100-120% a year? Uh huh.

This trade has about a 25% chance of incurring a total loss.

I thought that you could avoid a total loss in most positions if you see that the market moves against the position (or not enough in this case) that it can be closed for less than the total loss if done so before expiration. Do you agree?

opt789 · Mar 11, 2012

Quote from jkgraham:

I'm not focused on one specific strategy but this thread is. Why would jump to the conclussion that this strategy is all I do or study?

No offense but I have not seen anything in your posts to make me believe you are an experienced, professional, options trader. Your comment âAll I care about is making money with them on a regular basisâ sounds exactly like someone looking at the issue from the wrong angle. You seem convinced that you are going about things the right way and therefore can ignore what I posted. I never post this much, I am just avoiding my monster-in-law who is visiting and I am pretending to work, so I probably have no idea what I am talking about.

jkgraham · Mar 11, 2012

Quote from opt789:

No offense but I have not seen anything in your posts to make me believe you are an experienced, professional, options trader. Your comment âAll I care about is making money with them on a regular basisâ sounds exactly like someone looking at the issue from the wrong angle. You seem convinced that you are going about things the right way and therefore can ignore what I posted. I never post this much, I am just avoiding my monster-in-law who is visiting and I am pretending to work, so I probably have no idea what I am talking about.

HA that's funnyl. Actually I'm convinced that I'm not very interested in the trade that I started this thread with anymore. I think I will use strangles around earnings. But I am also learning as much as I can.

spindr0 · Mar 11, 2012

Quote from opt789:

Doesnât know what to call his IC, makes 100% a year with 90% probability, and says Atticus doesnât know what he is talking about. Three strikes?

Well, I'll give you the first two but I don't know about that Atticus comment

:eek:

spindr0 · Mar 11, 2012

Quote from jkgraham:

I thought that you could avoid a total loss in most positions if you see that the market moves against the position (or not enough in this case) that it can be closed for less than the total loss if done so before expiration. Do you agree?

Apples and oranges. The other peep claimed that the trade has a 90% chance of success of making the max profit of 40% and I disagree with that optimism.

You can cut your loss anywhere you want. That's not probability. That's money management.