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Reply To: Trade Discussion

Home › Forums › Income Lab › Trade Discussion › Reply To: Trade Discussion

March 24, 2016 at 4:07 pm #5133
IncomeLab (Old)
Participant

Because of the skew, IC will always start short delta. Getting short delta after the market sold off 200 points isnt the best scenario. Going unbalanced with intentions to roll up and add size to match put spreads is one way to put on a less bad IC. It doesn’t feel great when you put the trade on and 3 days later your short call goes from 10 delta to 18 but if you have a plan you must stick to it and execute regardless what you think the mkt might do next. I like balanced IC over unbalanced and often will use OTM options to re-balance NET position delta. A massive uptrend since 2013 made iron condors less fun because of the constant risk on the upside, but I think that’s changed sometime last year.

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