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Re: Credit Spreads
Well, the IWM chart you show marks out the exact trade I'm currently working. My short legs are at 72 and 86.
The SPY chart you show marks out almost exactly the trade I'm currently in. My short legs there are at 143 and 158. So, pretty much you're right on. With the current market conditions I'd say they're pretty much right on for doing these iron condors. We're seeing very whippy, volatile action without any real direction. ICs are directionless plays.
So...it is really that easy. You could certainly "leg into" an IC if you wanted, by selling a call vertical when price is at the top of an area you think it will respect, and then wait for it to venture down to the bottom to enter a put vertical and complete the IC. I tend to enter them all at once when market conditions warrant. If the market is trending like it was last year and half of this year, I'd be looking just at selling put verticals since the odds were with the market to go up.
Anyhow...you're seeing things right. The R/R really SUCKS on IC's, but the probabilities really play in your favor and as long as you know how to manage a trade and have a plan of attack when price gets to a S/R level you're watching...then you'll do fine.
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