Trade idea
ES iron condor
The speaker suggests selling an iron condor in ES with a 550 width, expecting the market to remain within the strike range. The trade is structured to profit from time decay and the expected volatility. The speaker advises adjusting the strike prices based on recent market movements, moving the calls and puts up 100 points to middle the trade again. The trade is considered interesting due to its potential for profit and the expected volatility.
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Strategyiron condor
Assetindex
ExpirationJune
Time horizon36 days until expiration
Entry / triggerMarket is lower than previous levels
Target / exitMax profit of $275
Invalidation / stopIf the market moves significantly against the trade
SpeakerSpeaker
Structure / legs- sell June 7725 call
- sell June 7750 call
- sell June 6750 put
- sell June 6725 put
Risks- Market moves outside the strike range
- Volatility changes
- Time decay reduces the value of the trade
Trade idea
Nasdaq Micro Futures iron condor
The speaker suggests waiting until the middle of next week or after the weekend to close the iron condor position. The reasoning is that the position is already in the middle of its life, and waiting a bit longer could allow for potential profit. The speaker also notes that rolling the position is not advisable, and the focus should be on closing it out at the right time. The risk is that the market could move against the trade, leading to a loss.
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Strategyiron condor
Assetfutures
ExpirationJuly 31
Time horizonWeeks
Entry / triggerPosition has been open for 22 days
Target / exitWait until the middle of next week or after the weekend
Invalidation / stopClose the position if the market moves significantly against the trade
SpeakerSteve
Structure / legs- short strike at 28,000
- long strike at 31,100
Risks- Market volatility
- Potential loss if the trade moves against the position
Trade idea
SPX iron condor
The speaker suggests that iron condors on the SPX with zero DTE are only viable when placed just outside the expected move and managed early. The strategy involves taking profits up to 25% and is considered a last resort due to its marginal returns in bull markets.
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Strategyiron condor
Assetindex
Expirationzero DTE
Time horizonshort-term
Entry / triggerjust outside the expected move
Target / exitmanage early with max 25% of profits
Invalidation / stopmarket moves beyond expected range
SpeakerTom
Risks- Market volatility
- Liquidity issues
- Time decay
Trade idea
Trade idea Iron Condor
If the stock price moves against the short side of the iron condor, the trader should consider rolling the short strikes to a lower strike price to widen the credit on that side. This adjustment can help manage risk and potentially increase the credit received. The trader should also consider the delta of the position and adjust it accordingly to maintain a desired risk exposure.
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StrategyIron Condor
Time horizonShort-term, with potential for adjustment based on market movement
Entry / triggerIf the stock price moves against the short side of the iron condor
Target / exitWiden the credit on the short side by rolling the short strikes to a lower strike price
Invalidation / stopIf the market moves significantly against the position, the trader may need to adjust further or close the position
Risks- Market movement against the position
- Increased margin requirements due to leverage
Trade idea
MU Iron Condor
The speaker recommends selling an iron condor on Micron (MU) due to the stock's recent price movement and high implied volatility. The trade is structured with a wide range and is considered a classic iron condor setup. The speaker emphasizes the potential for profit given the current market conditions and the stock's volatility.
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StrategyIron Condor
AssetEquity
ExpirationJuly
Time horizonShort-term
Entry / triggerStock price at 630
Target / exitProfit from volatility and price range
Invalidation / stopIf stock price moves outside the range
SpeakerScott
Structure / legs- Call spread: 1450-1460
- Put spread: 630-640
Risks- Market volatility
- Price movement outside the expected range
Trade idea
SPY iron condor
The speaker suggests trading delta three wide SPY iron condors, which are designed to profit from a range-bound market. The strategy is positioned to benefit from the current up and down market conditions, though the speaker notes that the market has not tested the positions yet. The speaker's approach involves selling both call and put options at different strike prices to create a risk-defined range.
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Strategyiron condor
Assetequity
Expiration38 to 45 days
Time horizonnot specified
Entry / triggerup and down market
Target / exitnot specified
Invalidation / stopnot specified
Speakernot specified
Risks- Market moves beyond the defined range
- Volatility changes
- Liquidity issues
Trade idea
SPY iron condor
The speaker discusses the use of delta three wide spy iron condors and the importance of staying mechanical. The strategy involves entering the trade with 38 to 45 days to expiration and managing the position by rolling it to 21 days. The speaker suggests that the sweet spot for maximizing returns is during the decay curve, and the optimal profit level is around 25%. The trade should be exited or rolled out when the position reaches this sweet spot to avoid holding into the last week of the expiration, which increases risk with minimal reward.
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Strategyiron condor
Assetequity
Expiration21 days to expiration
Time horizon21 days to expiration
Entry / triggerWhen the market is in a range-bound or volatile environment
Target / exit25% of max profit
Invalidation / stopIf the position is held into the last week of the expiration, due to increased risk and minimal reward
SpeakerSpeaker
Risks- Market volatility
- Unexpected events
- Inability to redeploy capital efficiently
Trade idea
Trade idea Iron Condor
When selling an iron condor, the probability of profit is calculated by dividing the collected credit by the width of the strikes. To ensure a reasonable probability of success, traders should aim to collect between 30% and 40% of the width of the strikes. Collecting more than 50% of the width reduces the probability of profit below 50%, which is not advisable. For example, if the width of the strikes is $5, collecting $2 provides a 60% probability of profit. Adjustments should be made if the credit collected is less than $2, which increases the probability of profit.
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StrategyIron Condor
Time horizonShort-term, with adjustments as needed
Entry / triggerCollecting between 30% and 40% of the width of the strikes
Target / exitProbability of profit of 60% or higher
Invalidation / stopCollecting more than 50% of the width of the strikes
SpeakerSpeaker
Risks- Market volatility
- Incorrect strike selection
- Failure to adjust positions
Trade idea
SPX iron condor
The speaker discusses their strategy of selling 20 delta 45-day SPX iron condors with $20 wings, maintaining delta neutrality. They note that the put legs are further away than the call legs, and suggest tightening the put side to earn more premium. The speaker acknowledges that skewing the condors can be beneficial, depending on market outlook, and suggests adjusting the put legs closer to the call legs to collect more premium while accepting a slight delta imbalance.
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Strategyiron condor
Assetindex
Expiration45 days
Time horizonshort-term
Entry / triggerdelta neutral with 20 delta wings
Target / exitpremium collection
Invalidation / stopmarket moves against the position
SpeakerMike
Risks- market volatility
- delta imbalance
- expiration risk
Trade idea
Trade idea Iron Condor
The speaker suggests adjusting the put legs of an iron condor to collect more premium when the market is neutral to slightly bullish. This involves moving the put legs up while maintaining a slight long delta. The strategy is based on market sentiment and allows for flexibility. The trader should consider the market's overbought or oversold conditions to adjust the skew accordingly.
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StrategyIron Condor
Time horizonShort-term
Entry / triggerNeutral to slightly bullish market
Invalidation / stopMarket moves against the skew
SpeakerTom
Risks- Market moves against the skew
- Volatility changes
- Liquidity issues
Trade idea
SPX iron condor
Given the current high volatility, the speaker suggests focusing on the near-month options, specifically March and April, for an iron condor strategy. This is based on the idea that high volatility creates a synthetic higher volatility environment, which is more suitable for such strategies. If volatility were to drop significantly, the strategy would need to be adjusted to longer-dated options.
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Strategyiron condor
Assetindex
ExpirationMarch, April
Time horizonshort-term
Entry / triggerhigh implied volatility
Target / exitsynthetic higher volatility environment
Invalidation / stopif volatility drops below 15 in the VIX or VIX futures
SpeakerTom
Risks- Volatility could drop below the threshold, requiring a strategy adjustment.
- Market direction could move against the short delta position.
- Implied volatility could change rapidly, affecting the effectiveness of the strategy.
Trade idea
Trade idea iron condor
iron condor is delta neutral and has no directional risk
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Strategyiron condor
Assetoptions
Entry / triggerwhen IVR is super high
Speakerunknown
Risks- market movement
- volatility changes
Trade idea
SPX Iron Condor
The trader is managing a $30 wide iron condor with a 21 DTE expiration. The strategy involves selling calls and puts at the outer strikes while buying calls and puts at the inner strikes to limit risk. The trader is concerned about market corrections or crashes that could wipe out the position. The suggested adjustment is to skew the iron condor with a small amount of negative delta to provide embedded protection without paying excessive premiums for VIX calls.
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StrategyIron Condor
AssetEquity Index
Expiration21 DTE
Time horizon21 DTE
Entry / triggerMarket within the defined range
Target / exitDefined risk based on strike prices
Invalidation / stopMarket moves outside the defined range
SpeakerScott
Structure / legs- Short Call at $30 strike
- Short Put at $20 strike
- Long Call at $40 strike
- Long Put at $10 strike
Risks- Market moves outside the defined range
- High cost of VIX calls
- Difficulty in timing the market for VIX calls
Trade idea
Trade idea Iron Condor
The speaker describes a trade involving an iron condor strategy around earnings, where both sides of the expected move are sold. The trade is structured to profit from the decay of premium if the underlying stays within the expected move. The thesis is that the trade is a bet on whether the underlying will stay within the expected move or move outside of it, with no inherent edge either way. The trade is priced to perfection, and the speaker notes that the probability of success is higher for sellers due to limited profitability.
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StrategyIron Condor
Time horizonOne-day event
Entry / triggerTrading around earnings with a strategy that sells both sides of the expected move
Target / exitProfit from the decay of premium if the underlying stays within the expected move
Invalidation / stopLoss if the underlying moves outside the expected move
SpeakerSaul
Risks- Loss if the underlying moves outside the expected move
- Market volatility
- Time decay
Trade idea
Trade idea Iron Condor
When trading iron condors, it is advisable to roll the unchallenged side of the position as soon as the short side is being challenged and the trader becomes uncomfortable with the risk. This approach allows for proactive risk management and prevents potential losses if the short side is breached. The decision to roll should be made early to maintain control over the trade and adapt to changing market conditions.
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StrategyIron Condor
Time horizonShort-term, with adjustments made as needed based on market conditions.
Entry / triggerRoll the unchallenged side of the iron condor as soon as the short side is being challenged and the trader becomes uncomfortable with the risk.
Invalidation / stopRoll the unchallenged side early to manage risk and avoid potential losses if the short side is breached.
SpeakerUnknown
Risks- Market volatility
- Inadequate risk management
- Failure to roll the unchallenged side in a timely manner
Trade idea
Trade idea iron condor
if you think it's going to go sideways, you've done your analysis, whatever the case may be, go for it
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Strategyiron condor
Entry / triggerif you think it's going to go sideways
Speakerunknown
Trade idea
Trade idea Iron condor
Selling iron condors once a week for 3 to 4 weeks is a form of time diversification. This approach spreads exposure over time, reducing the risk associated with holding a single position for an extended period. It is one of several diversification methods, including volatility, underlying, strategy, and sector diversification. While not as robust as product or strategy diversification, it is a close second and provides meaningful risk mitigation. The strategy requires consistent execution and maintaining the same unit size to avoid complexity. Adjustments may be needed if front month contracts become too narrow or wide.
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StrategyIron condor
Time horizon3 to 4 weeks
Entry / triggerSelling iron condors once a week for 3 to 4 weeks
Target / exitDuration spread over time
Invalidation / stopAdjustments needed if front month contracts become too narrow or wide
SpeakerScott
Risks- Adjustments needed if front month contracts become too narrow or wide
- Requires consistent execution and unit size maintenance
Trade idea
Walmart iron condor
Close the position to avoid earnings event and free up capital
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Strategyiron condor
Assetequity
ExpirationAugust 20th
Time horizon32 days
Entry / triggerIVR over 30
Target / exit20% profit
Invalidation / stopEarnings event
SpeakerConstantine
Risks- Earnings event could impact the position negatively
Trade idea
Trade idea Iron Condor
The speaker advises against attempting to roll an iron condor with one side at a time due to margin requirements. Instead, it is recommended to close the existing iron condor and open a new one. This approach avoids the temporary increase in buying power requirements and simplifies the process. The reasoning is that the margin requirements for a four-leg iron condor are higher, and attempting to roll one side at a time can lead to complications. The proposed execution is to close the current position and open a new one, which is more straightforward and less risky.
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StrategyIron Condor
Time horizonShort-term, typically within a few days to weeks.
Entry / triggerWhen rolling an iron condor, close the existing position and open a new one to avoid margin issues.
Target / exitNot specified
Invalidation / stopIf the market moves significantly against the position, the trade may need to be adjusted or closed.
SpeakerMark
Risks- Market volatility could lead to significant losses if the position is not properly managed.
- Margin requirements may still pose a challenge if the trader does not have sufficient capital.
- The need to close and reopen positions may result in slippage or higher transaction costs.
Trade idea
CLX iron condor
The speaker is short an iron condor on Clorox (CLX) and is concerned about the potential for early exercise of out-of-the-money calls due to an upcoming dividend. The discussion clarifies that early exercise of out-of-the-money options is not typically done for dividend purposes, and the email was a general alert to all holders of options on Clorox with an upcoming dividend. The speaker is advised that there is no risk of assignment for out-of-the-money options, and the email was sent as a precautionary measure.
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Strategyiron condor
Assetequity
Time horizonshort-term
Entry / triggerdividend announcement
Invalidation / stopdividend date
SpeakerTJ
Risks- Dividend risk
- Market volatility
- Early exercise risk
Trade idea
SPX iron condor
The speaker suggests that for SPX iron condors, a spread width of 50 points is sufficient for most traders, with 100 points being a maximum. Wider spreads (e.g., 150 points) are not recommended due to the increased capital requirement and the risk of significant losses. The trade-off between capital efficiency and probability is critical, with narrower spreads offering better capital efficiency and lower risk of large losses.
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Strategyiron condor
Assetindex
Time horizonShort-term, typically within the expiration of the options used.
Entry / triggerWhen the trader is willing to accept a defined risk and is looking for capital efficiency.
Target / exitThe potential return is maximized by choosing a spread width that balances capital efficiency and probability.
Invalidation / stopInvalidation occurs if the price moves beyond the outer strike prices of the iron condor.
SpeakerRodrigo
Risks- Market volatility can lead to larger-than-expected price movements.
- The trader may miss out on higher returns by not using wider spreads.
- The strategy requires careful monitoring to avoid large losses if the price moves beyond the outer strike prices.
Trade idea
AAPL iron condor
The speaker suggests rolling the call spread to August 320-330 and adjusting the put spread to maintain a small credit. The reasoning is that the current price is slightly below the strike price, and rolling the position to a later expiration could provide more time for the trade to work out. The risks include potential losses if the price moves significantly against the position.
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Strategyiron condor
Assetequity
ExpirationJuly 24th
Time horizontwo weeks
Entry / triggercurrent price at 311
Target / exitsmall credit
Invalidation / stopif price moves significantly against the position
SpeakerScott Sheridan
Structure / legs- call spread: 300-310
- put spread: (not specified)
Risks- Price movement against the position
- Market volatility
- Time decay
Trade idea
Trade idea Iron Condor
The speaker suggests that when implied volatility is high, an iron condor strategy can be used to profit from volatility compression. This involves selling premium in a range-bound market where the underlying asset is expected to remain within a certain price range. The trade is based on the expectation that volatility will decrease, leading to a decline in the value of the premium sold. The strategy is suitable when the market is in a range and volatility is high, but it carries the risk of the underlying asset moving beyond the strike prices, leading to a loss.
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StrategyIron Condor
Time horizonShort-term
Entry / triggerHigh implied volatility
Target / exitProfit from volatility compression
Invalidation / stopMarket moves beyond expected range
SpeakerSpeaker
Risks- Market moves beyond the strike prices
- Volatility does not decrease as expected
- Implied volatility increases unexpectedly
Trade idea
SPX iron condor
The trader is setting up an iron condor with a wide range of $50, using 45 delta for the short legs. The strategy aims to collect a credit of around $14.50, with a target of 50% profit. The trader acknowledges that the difference between SPX and XSP is negligible, and the focus is on the speed of profit realization. The trade is considered low risk due to the wide wings, which reduce the chance of max loss.
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Strategyiron condor
Assetindex
ExpirationMay 1st
Time horizonShort-term
Entry / triggerMarket closed
Target / exit50% profit
Invalidation / stopMarket moves beyond the wings
SpeakerPamela
Structure / legs- 6050 6100 put
- 7100 7150 call
Risks- Market volatility
- Unexpected price movements
- Time decay
Q&A
What is the general rule of thumb for the amount of credit you should look for when selling an iron condor?
The general rule of thumb is to collect between 30% and 40% of the width of the strikes. This provides a reasonable probability of profit, typically around 60% or higher, while avoiding the risk of collecting more than 50% of the width, which reduces the probability of profit below 50%.
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Actionable takeawayTraders should aim to collect between 30% and 40% of the width of the strikes when selling an iron condor to ensure a reasonable probability of profit.
Q&A
Would you roll up the untested side of the GDX iron condor?
Roll up the untested side (put spread) with 44 days to expiration. The speaker suggests sitting on the trade unless the thesis changes.
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Actionable takeawayConsider rolling up the put spread if the thesis remains unchanged.
Q&A
What is your opinion on buying back the short leg of an untested iron condor for 5 cents and then selling a new credit spread on that same side in a later expiration?
The speaker suggests that buying back the short leg of an untested iron condor for 5 cents is a low-cost action, but they advise against selling a new credit spread on the same side in a later expiration. Instead, they recommend selling a new credit spread on the same side in the same expiration to avoid confusion and maintain simplicity. The rationale is to keep the trade within the same cycle and reduce margin requirements.
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Actionable takeawayAvoid breaking up expirations when managing credit spreads to prevent confusion and reduce margin requirements.
Q&A
Should I keep my Tesla iron condor closer to expiration or manage it differently?
The speaker advises that since the trade is close to expiration, it's better to either widen the strike range or move the trade to a later expiration. The speaker also suggests selling out-of-the-money calls in August to collect premium and potentially profit from any upward movement in the stock.
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Actionable takeawayConsider adjusting the strike range or moving the trade to a later expiration to manage risk and potential profit.
Q&A
If you're trading zero DTS every day to buy the wings a month out and save on the spread, do you close the entire iron condor let's say at a 25% profit or you keeping the wings open for the next day?
The speaker suggests keeping the trade open and rolling the shorts, but acknowledges that the trade can be closed at 25% profit. They also mention that the trade costs more money due to the back month wings.
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Actionable takeawayKeep the trade open and roll the shorts if holding positions, but be aware of the higher costs associated with the back month wings.