tag:blogger.com,1999:blog-5375291312433129989.post6560233702040438675..comments2023-06-03T05:06:58.216-04:00Comments on The Lazy Trader: Closed Call side of June Iron CondorHenrikhttp://www.blogger.com/profile/05792195649092816606noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5375291312433129989.post-47389297703257741812014-06-01T09:10:16.146-04:002014-06-01T09:10:16.146-04:00Thanks for the comments Dave and glad the blog has...Thanks for the comments Dave and glad the blog has helped you.<br />Looks like you have either a Double Calendar or a Double Diagonal in place with June/July options. That's a good alternative for this market.<br /><br />The reason why I don't exploit them more often is because I don't feel I have a concise trading plan with them yet as I do with verticals. But, I will definitely be adding those to my arsenal in the future. Knowing what a double calendar or diagonal is, for me that's not enough. I need to design a well thought out trading plan that answers to questions such as: when to take profits, when to take losses, when to adjust etc and that takes time that sometimes I don't have.<br /><br />You're right about not overpaying for the back end option in a Calendar. And 1% difference in volatility between the front month and the back month is not bad. Obviously, the ideal situation would be to enter the Calendar when the front month options show a higher volatility than the back month ones, but that rarely ever happens with indices. It's true that they are slow in making profit or reflecting losses. I think I'm going to be way more relaxed with them.<br /><br />Cheers,<br />LTThe Lazy Traderhttps://www.blogger.com/profile/08598866019359750526noreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-43001574047050817052014-05-31T17:24:26.633-04:002014-05-31T17:24:26.633-04:00Hi LT and Jonathan
I have learned a lot following ...Hi LT and Jonathan<br />I have learned a lot following your blog and comments for the past few months. So I thought I better offer some thoughts in return. I am one of the traders, you alluded to, who missed out last month because I was afraid to sell options in such a low volatility environment. I did implement a strategy this month that involved buying a JUL out of the money call and out of the money put, as well as selling a JUN iron condor position. The call and put are cheap due to the low IV, and they reduced my vega exposure and also seem to provide some protection against a faster move up or down. I’d be happy to share my position if you are interested.<br />I like your new calendar time spread. I learned on one of the free mentoring websites that you should avoid buying your calendar if the back month option has IV more than 2 points higher than the front month options. But your back month IV is only 1% greater. You are in good shape if the SPY moves down quickly as the IV increase will explode. You face some risk if the SPY continues to drift up but I like your adjustment plan to purchase another calendar spread ahead to even out the deltas. My prior experience is the calendars are a little less liquid, require a little more commission as I have to purchase more of them, and take a little longer to reach profit goals. But they are a little safer and don’t hurt as much as a credit spread if the market moves quickly against them.<br />Thanks for the great website. Good luck with your trading.<br />Dave<br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-28922488508948147192014-05-30T10:52:06.369-04:002014-05-30T10:52:06.369-04:00hahaha
Good luck my friend.
2000 looks pretty safe...hahaha<br />Good luck my friend.<br />2000 looks pretty safe at the top of the projected uptrend channel.<br />I would have waited for a bit more credit, but I think you have good chances anyways.<br />LTThe Lazy Traderhttps://www.blogger.com/profile/08598866019359750526noreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-77134485269598572472014-05-30T10:46:38.223-04:002014-05-30T10:46:38.223-04:00I had a change of heart this morning. I decided to...I had a change of heart this morning. I decided to sell the July SPX 2000/2005 for .35 credit.Jonathanhttps://www.blogger.com/profile/14635010979050643513noreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-3911716221753916092014-05-30T07:41:27.784-04:002014-05-30T07:41:27.784-04:00Thanks,
I believe we are close to a short term top...Thanks,<br />I believe we are close to a short term top as well. but risk management is always priority specially when one of the Call spreads is 7 weeks away from expiration.<br /><br />Good to see you're not desperate for selling CALL spreads. Patience is the name of this game.<br /><br />Cheers,<br />LTThe Lazy Traderhttps://www.blogger.com/profile/08598866019359750526noreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-64880463337815737232014-05-29T23:52:50.766-04:002014-05-29T23:52:50.766-04:00You did the right thing by closing the June positi...You did the right thing by closing the June positions as you so stated so well. Your reasoning is sound. I have no bear call spreads on SPX/SPY. I missed my opportunity to sell the July SPY 172/170 on May 16th for about .13 credit.<br /><br />I believe we are pretty close to a short-term top. I think another 50 point move on SPX next month is unlikely. Saying that, I would not be ready to sell call spreads on SPX as I don't consider it overbought yet. I missed my opportunity this Tuesday to sell bear call spreads on this week's IWM at around 115/117. It would have created a nice iron condor with my 102/100 bull put spread. I am waiting for IWM to hit 116 before I sell some July bear call spreads. If it doesn't happen, that is fine with me. I am very comfortable with my bull put spreads.Jonathanhttps://www.blogger.com/profile/14635010979050643513noreply@blogger.com