Credit Spreads

[TinGull]

Any sort of close below 74.50 or 84.50 will be where I start to adjust. I'll write up adjustments accordingly.

[TinGull]

[TinGull]

IWM 70/72/86/88 IC was put on for a .58 credit / 36.6% ROI. I will be doing all my IC's at 40-50 days out, and this was 44 days out. If price comes down to 75 (using a 2.5 ATR) then I'll look to cover that put portion.



I've taken off my 158/161 call spread at a .02 cent debit, for a total of .35 credit. That was a risk of 2.63, or a 13.3% ROI. Right now, price is falling, tho not drastically. SPX is down 2 points this morning and I expect some chop around after the selloff yesterday.

[TinGull]

[TinGull]

Phew...what a day today. Had me sweatin'!! haha Well, that 1450 level was supported big time this afternoon as buyers came in and swept the market off it's feet. Price is still under my really sweet spot, but within the range it needs to be. I hadn't been a part of what appears to be a shakeout before. When I was trading spreads before it was in a relentless uptrend that lasted months and months and months.



Looking forward to price rebounding a bit tomorrow...and hopefully vol will drop off a bit and I *might* close out the positions depending on what I see for debits to close.

[TinGull]

Well, this isn't always a fun thing to have to talk about...got stopped on my put spreads from the SPY iron condor. My short strike was at 143 and 141 and after yesterdays closing action after trying to mount a relief rally during the day...I decided it'd be better to cut those trades loose now rather than risk the loss. I always want to close out 4-7 days prior to expiration anyhow, and this was the 4th day prior to it, so my rules would dictate me getting out then anyhow.

So, close the trade and when combined with the credit given from the call spread, I ended up losing a penny per contract. Basically break even. Sucks to have to wait for a few weeks to pass and then you get nothing. BUT, it's better than getting a big loss.

[TinGull]

[TinGull]

Currently working....

[Bam-Bam]

Hey Tin:

What's the advantage of an iron condor over and iron butterfly? An iron butterfly is essentially a combination of a long straddle and a short strangle. If I am looking at it right, the yield curve is about the same.

Thanks,

Bam-Bam

[TinGull]

Right...I don't know that there is a difference. More people just know about condors and iron condors rather than iron butterflies. Could've been the other way around, I suppose, too. Both IB and IC have wide sweetspots whereas a regular butterfly will have its max profit at a specific price. I really just like a couple different strategies rather than learn the myriad of them. ICs and regular verticals, calendars and just learning about diagonals. I'm cool with not having to guess the exact direction or strength of the directional trade.