Monday, February 24, 2014

Two Out of Three

The following are ideas from the book "Profiting with Iron Condor Options", by Michael Benlifa.  I am summarizing the idea and trying to put in into practice in my Trading Plan.  Most of the time you cannot get the perfect trade three out of three considerations below.  You got to choose just two out of three.  Which two?

The three considerations when selling Iron Condors are :
  1. Position : Delta 10s, outside previous highs and lows
  2. Price: Credit of 20% of margin
  3. Time : Expiration is in 4 to 5 weeks
Michael suggest the first two : Position and Price, leaving Time negotiable.

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