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Ironcondor

IRON TARIHi guys, this is a new iron condor to set, 4 weeks with 10% strike So our short legs are @ 256 and @ 313 We have 80% probability of success, so a rew/risk 100-80/80= 20/80 = 0.25 Depending on the size you can trade, and the spread of the 2 verticals, we can reach a Rew/risk of about 0.37, that is 50% more than 0.25. The preminum is not that much, but we have a very high succesfull rate at our side, plus we can always roll on leg is the things go bad to lower our risk. Using a wider spread the odds increase more, because there is more room for the price to move before to reach the maximum loss, even if in this case we can always close the leg before expiration, to lower the loss. Enjoy your wallet! Tari.
NYSE:HD
by TARITRADE
IRON TARIHi guys, for this iron condor we have 4 weeks and 10% strike, our porbability of success is 80% So the maths as you saw in the previous posts is easy, but now let's do them from another point of view: the short legs are 193 and 235. If the sum of their DELTA is higher than 0.2 (80% is 0.2 delta, 70% is 0.3 delta, you know) is a valid trade. This case we have about 0.13 + 0.18 = 0.31 that means the prbability to have the maxim profit is 100-31= 69%. But we know that our odds are higer, so we jump on this ride! Enjoy your wallet! Tari.
NASDAQ:MSFT
by TARITRADE
Iron TariHi guys, this is another iron condor from the strategy W1 5% strike. Probability 63% gives a Rew/Risk = 100-63/63=0.58 Today the market does'nt pay enough, RR is 0.60, not that much we'd like to trade, but we can leave a pending order to get something more. In this case I prefer to widen the spreads of the 2 vertical, always having a RR not lower than 0.58. This is because the wider the spreads are, the higher our prability of success are. In this case the breakeven moves a bit giving us an higher range to be protibable, plus the max loss moves on each side of 4$. 8$ more for the iron condor is a good extra room for the price. So in this case we enlarge our probability of success, without touching the RR ratio. Enjoy your Wallet! Tari.
NYSE:CAT
by TARITRADE
Tari CondorHi guys, this iron condor is W1 5%strike (check my strategy for more info, it's vary easy!) We have 71% of success: Rew/Risk= 100-71/100=0.40 With one week to expiration it's not easy to find a good price for these 5% strikes, so I moved the strikes @ 190 and @215, with a 5$ spread for each vertical. The RR is 0.41, so this is not a big edge, but trading wider wings wh move our edge on the side of the probability, becuase BE is wider, just like the bought strikes, wich give us tha max loss. Enjoy your wallet! Tari
NYSE:GS
by TARITRADE