Monday, March 1, 2010

03/01 OEX Weekly Iron Condor

Started my weekly position once again this Monday. I checked Verticalsolutions.com’s forecast of current conditions before getting in, just to make sure we were not dealing with a major bullish sentiment before I got in.





















5 comments:

Chad said...

Hi Gustavo,

Are you continuing to enter with the complete iron condor fill (being very patient) as opposed to trying to leg into the condor. Are you getting your fills, or is it taking most of the day? (I am getting fills easily with paper trading, but I know that is not reality) :)

Thanks,
Chad

John said...

Have you looked at using XEO instead of OEX? European style so no risk of early exercise with cash settlement. Still have weeklies, though not as much volume. Just curious if you had looked. Early exercise and cash settlement keeps me away from selling options in OEX.

ITM verticals on weeklies have worked for me.

Anonymous said...

It sounds like you work pretty hard to get good prices on these weekly ICs. Can you elaborate on your approach for fills- i.e. do you place separate vertical orders for the call and put side, individual orders for each option, or one order for the entire condor? If legging in, do you ever get stuck with only one side filled?

Tim

Gustavo's Trades said...

Hi everyone, let me answer your questions based on what I've experienced thus far.

As far as fills: I started this strategy by filling the condor one contract at a time (single orders). Then, a few weeks back I asked my friends in the California 1 Trading group and they said they left their condor order in the market and let it get filled. So, for the past 2 weeks I have been filling this trade as a condor order, I put it in mid-morning and let it sit. Last week I got a partial fill, this week they all got filled. So that's what I plan on doing moving forward.

As far as XEO, I never looked at and am not planning to. Early exercise (as far as I know, and PLEASE do your HOMEWORK and do not take my word on that) is only an issue if you let your short contracts get in the money. That's what I found by reading the article bellow:

https://www.blogger.com/comment.g?blogID=4049167043965640947&postID=6101010637329765683

With the way my stop is set up, I'm not letting the short contracts get In the money, thus I don't worry about early exercise.

Hope that helps.
Gustavo

Chad said...

It does help, thanks my friend. :)

Chad