Do NOT make a post asking for advice, that belongs as a comment in the options advice thread". Keep discussions civil, informative and polite. Off topic comments, attacks or insults will not be tolerated. Strictly no promotional threads. Do not post your app, tool, blog, event, etc. A hedge fund analyst explains his stock research process. Full of excellent links to videos, articles, and books. I just watched the above video explaining the theory behind purchasing the two vertical legs of the condor to make the iron condor. They mentioned quickly the idea of placing a stop options, which would effectively lower the probability range, but significantly reduce the risk. Using the example above could somebody please walk me through how you would place a stop loss appropriately? What kind of capital do you need to trade Iron Condors and other complex options without bleeding dry from commission fees? Yeah, I mean, before we even go into the specifics of this trade, I want to strategy out that iron condors are extremely expensive, so you have to place a large amount of money in both spreads just loss break even. Additionally, I definitely don't think an iron condor is an appropriate SPX or any stock or index play AT ALL these days, what with Russia and Nasdaq jitters I really doubt we're in for low volatility Hmm, stop thanks for the perspective. Although I only count 4 trades, I don't mean to nit pick, but I'm afraid I might be missing something. I think you're right about the timing of the market for IC's, but I'm trying to research all this stuff before I start playing around with my strategy so it'll probably be a couple months before I actually start buying options. Is placing a stop loss common for options strategies? Would an appropriate strategy when betting on volatility be a saddle? A straddle or strangle is typically used for betting that the eventual volatility is greater than the implied volatility, however for indexes like the SPX, it is much harder to bet on volatility through options due to very efficient pricing, that unless some huge macro event occurs, the volatility increase might not be able to combat the time decay buying options typically is long vega. It will be more appropriate to take a bet on a volatility index like VIX. The 8 trades come from the closing of the contracts. Sure it's 4 to open but you also have to close them. Additionally, I definitely don't think an iron condor is an appropriate SPX or any stock or index play AT Stop these days, what with Russia and Nasdaq jitters. Obviously, it's not exactly proportional, but just because things are more volatile now doesn't necessary make credit spreads bad trades. To elaborate, the most profitable iron condor and iron butterfly spreads are those that are taken on while volatility is high option prices are high and closed when volatility is low. High stock price results in high intrinsic value in options, and high volatility results in high extrinsic value. This will save you on brokerage commission. Use of this site constitutes acceptance of our User Agreement and Privacy Policy. By signing up, you agree to our Terms and that you have read our Privacy Policy and Content Policy. Log in or sign up in seconds. Submit a new stop post. Discuss news items relevant to investors 2. Share investment ideas loss insights 3. WSJ guide on how to pick a financial planner Why we recommend Vanguard Compare brokers. Barron's Online-Broker Review Should I invest a lump-sum, or wait? This has been asked and answered many times in the past. Use strategy search function or check out thisthisthisthisthis or this thread. Useful Online Resources A guide to stock research! You are responsible for your own investment decisions. Please consult with a registered investment advisor before making any investment decision. I want to start learning to read financial statements. Which companies' are easier to analyze for me to start with? Lending Club doesn't verify income on the majority of loans on it's options. What are serious harms to the investing world in a world of over production? Curious the thought here on the flattening yield curve, is it, as they say an indication by the market loss the hike was too much or is this all knee jerk at this point. This is an archived post. You won't be able to vote or comment. Look at options for Toyota ADR TM vs. Ford F for example. Posts are automatically archived after 6 months.
How to set Stoploss by Smart Trader of NSE Intraday trading Trick and Tip Strategy
How to set Stoploss by Smart Trader of NSE Intraday trading Trick and Tip Strategy
The goofy thing is the PC whine about Gamergate and other things as if there are a substantial number of American, straight white males, who are actually in favor of crime.
Commons and the House of Lords appointed Select Committees to report on the.
The goofy thing is the PC whine about Gamergate and other things as if there are a substantial number of American, straight white males, who are actually in favor of crime.
There were multifarious reasons and causations that led to liberation of women.
A private sector with regards to sport can be seen as a Company whose fundamental aim is to make money, but who also often help to fund sports.
When pouring the epoxy is there any chance for bubbles to form due to air pushed out from beneath the bottle caps or is this generally not a concern.