Just filled the weekly OEX Iron Condor. I got a fill for the entire condor order by giving up about .10c from the mid price, still got .40c for the condor. Last week I spent about 2 hours getting in the trade and realized it wasn't worth the time, better to just give up a bit but get a fill, specially because my time is limited (aka. work).
2 comments:
Gustavo,
Nice blog, thanks for sharing.
Have you looked at a 2 day iron condor using weekly options? I found a site that does that, and what I like about it is you are out of the market a fair amount of the time and can't be hurt then (like Dan preaches). An example from last week was a 485/490/510/515 OEX IC for 0.40 credit with OEX at 500 opened last Thursday morning. It returned 9% on margin in 2 days. Obviously your short strikes are closer to the mark to get that credit for 2 days, but it is essentially the same risk as our weekly trade over less time.
Tim
Hi Tim, this is another idea, to do some sort of "dive bomber" in the last day or so of trading. I think it is a matter of testing to see how it would work over time.
In essence, I've been doing a similar approach with the weekly. I specially like the limited exposure to the market, it ressonates well with my trading style.
Then again, one could argue I'm in the market every week. But the trade start AND finish the same week, so your risk is contained. If one week is bad, you come right back next week to start the recovery. For a month-long trade, suppose you're in for 4 weeks and if one of those are bad, your month is over...
Gustavo
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