Questions on Iron Condors - Options on Futures | futures io social day trading
futures io futures trading


Questions on Iron Condors
Updated: Views / Replies:3,285 / 12
Created: by sasquatch Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Questions on Iron Condors

  #1 (permalink)
Trading Apprentice
Rockford, IL
 
Futures Experience: Beginner
Platform: TOS
Favorite Futures: Stocks
 
Posts: 5 since Oct 2012
Thanks: 0 given, 0 received

Questions on Iron Condors

When you trade an Iron Condor, should you close each leg individually? At times I can buy back one side for 5cents which would give me no commissions.

Which way is better, close the whole thing or each side individually?

Thanks

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Trading Apprentice
Raleigh North carolina United States
 
Futures Experience: Advanced
Platform: can not answer
Favorite Futures: Options
 
Posts: 4 since Nov 2012
Thanks: 0 given, 5 received

Iron Condor: Risk Management


If you can close out one side of your iron condor spread for 5 cents then do it! Do not take the chance of the market turning around and increasing the price of those options. You have got all the "good" out of those spreads-- time to close. In fact, if I trade an index iron condor, I'm looking to close out any spreads at 20 cents. (that's just me) On the other hand if you're at your profit target, maybe 50% to 60% of your initial credit, then take the whole thing off. (or go into a "profit protect mode"- do not end up losing money on the trade!). hope this helps

You trade with tradeking? like them?

Reply With Quote
 
  #4 (permalink)
Membership Temporarily Revoked
Toronto Canada
 
Futures Experience: Advanced
Platform: excel
Favorite Futures: stocks
 
Posts: 10 since Nov 2012
Thanks: 0 given, 4 received

in my experience, i think it's best to open condors, strangles, straddles at once and close them at once. it's tempting to do one leg at a time, but my view is that you put the work into analysing the scenario and choosing the options, that's the core of the trade. when you start trying to get fancy, then you're moving away from what the trade should be about.

that's just my opinion - good luck,

Reply With Quote
 
  #5 (permalink)
Trading for Profit
West Coast of Florida
 
Futures Experience: Intermediate
Platform: TradeStation, Danials Trading
Favorite Futures: TF, CL, & HO HOs
 
ESFXtrader's Avatar
 
Posts: 505 since Jul 2010
Thanks: 56 given, 2,283 received

Questions on Iron Condors

Certainly, some of the responses are good, but I have seen considerable moves after closing out such a trade. Although Think or Swim offers the commission free close of the .05 option buy back, most brokers do not. One might consider closing the short side only, if the value of the long side is very small. This cuts the cost of commissions and allows you the opportunity to profit when the price reverses. The closer you are to expiration, the better this works. It is nice to profit on both sides of the trade.
Good Trading.
WK

Reply With Quote
 
  #6 (permalink)
Trading Apprentice
San Diego, CA
 
Futures Experience: Intermediate
Platform: tos
Favorite Futures: Options
 
Posts: 23 since Nov 2012
Thanks: 14 given, 1 received

I've written a tool to back test iron condors on the RUT. I have a test that attempts to leg out, and my preliminary data shows that it is better to leg out of a bad spread and keep the good one to recoup losses. Of course, this depends on the width of the spread, and if you have another trade you need to free up the margin, also the value of the other side (if its 0.05, close'r out)

Reply With Quote
 
  #7 (permalink)
Trading Apprentice
monroe la.u.s.a.
 
Futures Experience: None
Platform: TradeMonster
Favorite Futures: options;stocks;gold
 
Posts: 3 since Dec 2014
Thanks: 4 given, 0 received

iron condor question?

Is an iron condor used for a stock that stays pretty much flat,or moves mostly sideways with low implied volatility?

Reply With Quote
 
  #8 (permalink)
Elite Member
Edmonton, Alberta
 
Futures Experience: Advanced
Platform: IB
Favorite Futures: nq
 
Posts: 55 since Jan 2012
Thanks: 27 given, 57 received


Toby B View Post
Is an iron condor used for a stock that stays pretty much flat,or moves mostly sideways with low implied volatility?

Toby (assuming you are selling premium): you hope that the underlying stays relatively flat after putting the trade on. With a low IV underlying, the credits you receive will be low plus you are more susceptible to an increase in VOL which will hurt you.

Assuming no earnings or potential binary news events, the best scenario for condors is to put your trade on when the IV for the underlying is greater than average (relative to itself over some defined lookback period -eg. past 6 or 12 months).

For example XYZ has an average VOL of 20 over the past year. Now, the IV is 35. That what be a good time to sell premium (Iron Condors, butterflies etc). Hoping for relatively flat price movement and a reversion to the mean in volatility. Collect theta and you will be happy in this idealized scenario

Reply With Quote
The following 2 users say Thank You to gfmatt for this post:
 
  #9 (permalink)
Trading Apprentice
Vail, CO USA
 
Futures Experience: Intermediate
Platform: ThinkorSwim
Favorite Futures: options
 
Martzee's Avatar
 
Posts: 12 since Jan 2015
Thanks: 6 given, 8 received


optiontrader767 View Post
If you can close out one side of your iron condor spread for 5 cents then do it! Do not take the chance of the market turning around and increasing the price of those options. You have got all the "good" out of those spreads-- time to close. In fact, if I trade an index iron condor, I'm looking to close out any spreads at 20 cents. (that's just me) On the other hand if you're at your profit target, maybe 50% to 60% of your initial credit, then take the whole thing off. (or go into a "profit protect mode"- do not end up losing money on the trade!). hope this helps

You trade with tradeking? like them?

I think this also depends on the time remaining until expiration. If there is a few days left (let's say 2 to 3 days) I wouldn't bother closing such leg as it is unlikely that the stock or index would turn that fast, considering you are selling 10 Delta on call and less than Delta 18 on put side. If there are more days left i.e. week or more, than definitely I close such leg.

If it happens that both legs are close to nothing worth then yes take it all off.

My account is very small so I cannot trade more contracts so I have to play it until the very end and shoot for expiration. Buying back my 1 or 2 contracts wouldn't make me much left.

Reply With Quote
 
  #10 (permalink)
Trading Apprentice
Salt Lake City, UT/USA
 
Futures Experience: Advanced
Platform: TOS
Favorite Futures: Index options, Futures Options
 
Posts: 10 since Mar 2015
Thanks: 0 given, 11 received


My personal approach is to close the spreads separately, but with orders entered at the same time. I've found that my condor exits on the RUT and SPX can sit for a while, but if I enter orders to exit the call spread and put spread separately (but within a few seconds of each other) the condor is closed down more quickly and typically at a little better pricing.

I enter these orders only after I'm above my profit target and in a time of sideways action during the day...you don't want to try this type of exit in a trending or volatile period of the day. I also use this same approach for entering my condors.

My 2 cents.

Reply With Quote

Reply



futures io > > > > Questions on Iron Condors

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Anyone knows about Iron Beam brokerage ??? tradercube Reviews of Brokers and Data Feeds 5 October 27th, 2016 03:55 PM
ADXVMA Questions max-td NinjaTrader Programming 52 October 2nd, 2013 06:24 AM
SRWare Iron: The Browser of the future kbit Tech Support 1 April 1st, 2012 11:47 PM
Newbie Questions JTurner77 ThinkOrSwim 3 December 31st, 2011 11:46 PM
Several questions about futures rounder8 Beginners and Introductions 6 June 24th, 2011 08:25 AM


All times are GMT -4. The time now is 06:51 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-16 in 0.12 seconds with 19 queries on phoenix via your IP 54.145.16.43