Short strangles on stocks

thx for the feedback. I'm thinking one ETF with positions on different strikes over different months, that way it would be eaier to manage.

What do you think?
 
Quote from ForexForex:
12-11-11 03:48 PM

I recommend this trade, it fits your requirements.


  • Red Hat (RHT) @ $49.70
  • Jan 20, 2012 options
  • Sell 45P @ $1.35
  • Sell 55C @ $1.00
  • Buy 40P @ $0.60
  • Buy 50C @ $0.35
  • Credit: $1.40 minus commissions
  • Maximum gain: $140.00
  • Maximum loss: $360.00
  • Hold till expiration OR if RHT reaches $45.00 or $55.00 exit entire trade.
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Update

RHT at $46.36
P/L: -$60.00 after 1 week.
Hold through earnings.
 
Quote from ForexForex:

Update

RHT at $46.36
P/L: -$60.00 after 1 week.
Hold through earnings.
More...

RHT at $42.55, I would now close this position at a loss of $115.00. falcon that is a real world example of selling options.

Buy 45P @ $3.60
Sell 40P @ $1.05
Calls worthless
$255 - credit $140 = $115.00
 
Quote from ForexForex:

I recommend this trade, it fits your requirements.


  • Red Hat (RHT) @ $49.70
  • Jan 20, 2012 options
  • Sell 45P @ $1.35
  • Sell 55C @ $1.00
  • Buy 40P @ $0.60
  • Buy 50C @ $0.35
  • Credit: $1.40 minus commissions
  • Maximum gain: $140.00
  • Maximum loss: $360.00
  • Hold till expiration OR if RHT reaches $45.00 or $55.00 exit entire trade.
images.jpeg

More...
How come the thumb didn't reverse direction and turn red?
 
I am with you

BTW,when you put on condors,how do you decide if the trade is worth taking?

Is there a minmum risk reward ratio you wll accept?

IMO,thats the first step..

Quote from ForexForex:

I would close it and take the $115.00 loss.
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