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Graham DunlopParticipant
Igor – A quick question – Why did you go for a KISS IC rather than an ICBase IC which is more flexible?
– Many thanksGraham DunlopParticipantIgor – Have you been filled on this trade yet?
Many thanksGraham DunlopParticipantIgor – It would be great to know why you went for another KISS Iron Condor – rather than an ICBase Iron Condor – Many thanks
Graham DunlopParticipantIgor
– It’s great that we are now doing EIP trades. I will follow with interest.
– I note that some of the “bread & butter” ICBase Condors are now closed or close to being closed.
– Are you going to do some more ICBase Condors?
– Many thanksGraham DunlopParticipantIgor
– This Trade seems to have gone well – well done.
– What is it’s current status?
– I note expiry is very close and we are now in “Gamma Risk” week.
– Many thanksGraham DunlopParticipantIgor – The Bear CALL is still hedged. Should it still remain that way?
– Many thanksGraham DunlopParticipantIgor – I still have a 23JUN17 IC open. It’s still going well and I am still squeezing juice.
– When should I exit to avoid Gamma Risk issues in the last week?
– My short strikes are still 50 and 54 SPX points away from the underlying.
– Many thanksGraham DunlopParticipantIgor :
– I find that many Traders like yourself wait for the perfect entry – ie $1.70 in this case.
– It is now one week since you tried to get a fill.
– Would have been better just getting a fill as close as possible on day one – say a fill at $1.55 to $1.65 and then gone on and focussed on other things in life.
– One would have earned a week’s income by now – not the absolute optimal ideal – but income.– Does this make any sense or should I be reviewing my trading style?
– Many thanksGraham DunlopParticipantIgor
– As usual the detail was extremely helpful.
– Clearly as you state there is not much difference – So it is probably personal preference.
– What I find very powerful is how easily the shape of the Risk Curve can be changed – just by how many Deltas are added.– Many thanks
Graham DunlopParticipantIgor
– Is there an opportunity to roll-up the Bull PUTs?
– Would 2370/2360 be logical?
Many thanksGraham DunlopParticipantIgor
– A quick question – would it have been a neater solution to have bought back some of the 2485 CALLs that you sold as part of the original IC?
– One would then be left with the original Bull PUT – plus a Ratio Backspread on the CALL side. Ratio Backspreads seem to be neat, flexible and easily managed with a changing Delta environment.
– Many thanksGraham DunlopParticipantIgor – An excellent response and insight – Many thanks.
Graham DunlopParticipantIgor – I wasn’t quite sure where to submit a general question – so I have chosen ‘Tips’.
Question:
– In your Trading Rules that would govern the way you do Income Lab trades – are you bound to trade Iron Condors all the time?
– With the glorious benefit of hindsight in the recovery from the 43 point ‘down day’ on the SPX on May17 – it would have been far more profitable to have traded a Bull PUT only – leaving the Bear CALL side off the IC.
– From May18 to May26 – Bear CALLs just got in the way.
– This was particularly relevant to 2 trades – 23JUN17 IC + 07JUL17 ICGraham DunlopParticipantIgor – Thanks for all your trouble – that was a great analysis.
What I am learning from you is that by going a decent distance from the underlying – by using Time to Expiry + Delta – you give yourself plenty of room for logical and effective adjustments.
You could be changing my Option Selling career!
Graham DunlopParticipantIgor – Like Michael I am finding your decisions on May 17 really interesting.
Question-
On May 17 the SPX had dropped 43 points and the VIX had spiked to 15.59.
– After closing the Bear CALL side of the IC you were left with the Bull PUT side with a Delta of 22.85% on the short leg.
– How did you know that the SPX was going to bounce the following day – and things would work out OK?
– Surely it could have just kept going down with a big opening gap on May 18? -
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