Selling Weekly iron condors

[jb514]

Quote from iuvius:

Some of my best trades have been near the end of the week. Big commissions for small theta.

I'm assuming you mean the other way around.
I've had a lot of good luck with opening condors thursday morning when the weeklys open and then closing them later the next day.

 

[deltastrike]

Quote from Vaydee:

I know it is risky to sell weekly iron condors but I have been trying it for a couple of weeks and so far it has been managable.

I am yet to figure out if there is any edge in opening the position on Friday ( before the weekend) versus on Monday ( after the weekend).
i am not sure if I see any big advantage of theta decay.
I wonder if the premiums on Fridays already take into account the weekend time.
Any thoughts?

I've been using this strategy with paper-trading and it's been fairly successful. I usually sell way out of the money and wait until Tuesday to minimize the risk.

 

[Vaydee]

Quote from iuvius:

Some of my best trades have been near the end of the week. Big commissions for small theta.

If the underlying gets close to your option strike, you can close out the position, cut the loss, and call it a day (or even reopen the position in a new spot).

But over the weekend, all sorts of unpredictable things can happen. Remember that an IC is best for a sideways market, and after-hours gapping is, well, the opposite of sideways, with no chance to close your position and cut losses.

Personally, I wait until Monday morning. And save some for later in the week. You might discover some late bloomers.

Yes I agree.. end of week or even just put an OTM spread on Friday of expiration. This seems to work for me.