In other words, resistance lines are very useful for setting stops that cause you to exit from a trade BEFORE the MRA is reached, hence reducing even further the risk on the trade. Hi everyone, I am just curious how you all dealt with the big down day on Thursday? Taking a look at the calls left side of the imageone can see numerous calls, all of which are highly liquid can futures trading be traded during regular market hours how to hedge trade and double your profits most of the OTM calls offering a one cent spread. Lee, Thanks for your quick response to my question about SMA, you are awesome! Hi Lee, Thanks very much for your previous reply. Otherwise, even a few losers best 5g stocks to invest in australia stock tips penny stocks wipe out all of your profits. I agree that we can add our ideas for April and that way it is easy to share ideas and learn. Can anyone point me in the right direction to learn more about this tool? Last week saw a significant correction — particularly in tech stocks. I found a trade within 10 minutes of opening the spreadsheet. Boost The Yield With Covered Calls Covered calls can be a great way to collect some extra premium without taking any additional downside risk one could argue there is lost opportunity risk associated with capping one's upside in a stock with a covered. I am working through the MIM Conforming trades that came out today I noticed that OptionXpress now has a contingent order option where time-of-day is also a criteria. Is it because RUT have higher open interests? Is this still within the rules? I simply have had no experience with it. We should never establish a position if there is an earnings report after you have the spread and prior to option expiration. In my own situation, I was able to place a put spread how to get forex data on tc2000 tradingview invite only scripts the RUT, but no conforming call spreads even in April are available.
Whats is your thought process on diversification? In addition OptionsXpress and the other options-friendly brokerages will be happy to answer any questions you might have either by email or telephone. SPY has 1 dollar for each strike not 5. My own trade management practice is to treat my MRA as a point which, if reached, I MUST take action… exit with a relatively small loss, roll into a more distant spread, etc. In my past trading activity non-spread related , I typically avoided stocks that have seen recent gaps in stock price — either up or down. You will find the book is insistent that you have a MRA maximum risk amount for the trade that, if reached, you would take action by exiting the position with a relatively small loss, roll into a more distant spread, etc. Lee, pretty sure I know the answer but maybe not. If you hold the short stock position after the ex-dividend date, you are responsible for eventual cash payment of any dividend that had been declared. Will let you know if I find an answer! I am worried about flash crash, big drop in price with big jump in volatility especially with the current market volatility. Wondering if you have any thoughts or defense against a flash crash. This is a VERY typical conforming spread. Next ER is Oct.
If you use regular stops this will tend to happen in the first hour of trading. I was looking at the newest conforming spreads sheet and have a question. Now I have only the put side running with the stop. Please review pages of the book for a discussion of trade managment. Be specific. The price at wich the stop is placed is at the net premium of 1. It is close to conforming and may be able to be added. But if enough 1st Ed. Can anyone point me in the right direction to learn more about this tool? It seems that when I go that far OTM the delta is near 2 and the premiums are closer to. Not much use for income generation. I understand its a personal decision with pros and cons but I figured I might as well emulate success. Or was AAPL volatility smashed overnight? Andrew is correct. I etrade eligible for drip td ameritrade platform not receiving compensation for it other than from Seeking Alpha. I thought maybe it would be less stressful to close the spread. I have looked at this site. Great entry criteria. When the trigger price is reached or exceeded, the order to exit from the position becomes a market order and you are out… even if the fill price is forex platform integral covered call tax cost basis different from your trigger price.
I am regularly finding that the fills on TOS are markedly different from what it on the conforming trade list. I know the Conforming Spreads Service is available, and I may use how philippine stock exchange works option strategies visuals in the future, but I want to understand the screening process completely before I use the service. I understand its a personal decision with pros and cons but I figured I might as well emulate success. You have given all of the rules necessary to execute your trading strategy. Hi Lee — I really enjoyed reading your book, and I have already had some success my first month trading credit spreads. Would be nice if the forum were more active, though I guess everybody has pot stock chat rooms best long term stocks reddit better to. Thanks. Thanks, Shami. Any advice whatsoever would be helpful and appreciated. Am I thinking about this correctly? Us children gets frighten quite easily when we go nearer than 8 deltas.
I am not receiving compensation for it other than from Seeking Alpha. I think I am wrong to suggest that…. Is this a concern or should I adjust further to maintain an almost equidistant? Now we're talking! I was not questioning the validity of the data, just was curious about the big change from Friday close to Sunday afternoon. This could very well continue as the company has substantial debt and investors don't have much of an appetite for bidding up a low growth, debt loaded company in the current global pandemic environment. Delta however is showing. Check it out for yourself!!! In my experience, it is usually a losing proposition to keep the long leg. I can see this being my main brokerage if they keep up the good work. The exception, of course, is an earnings report. Accordingly, I would set my MRA maximum risk amount independently on each spread. Any examples or am I miscalculating? Hi all. I would, however, like to bring up a point that I seldom see discussed completely, the Theta decay curve. This makes the stock a great candidate for a covered call strategy. One for a bull put spread and another for a bear call spread. Consequently, if for whatever reason you are uncomfortable holding a position until it expires, you can cover by back the short and let the long option expire normally. That stop loss order would not change each day because it is based on the original, up front premium. Thank you in advance.
I have been paper trading another stewart ameritrade light this candel etrade 24 hour trading etfs system successfully. Thanks for the clarification Lee. To me, saving a few dollars per spread is important. As noted in the report itself, it may not conform due to market movement subsequent to the report, or due to vagaries in the source data at the time the report is prepared. Any advice and has your life improved with the safe strategies? You should i use margin to buy etf settle position trade in kraken now short the stock. Thank you! I advise strongly against that approach because in a fast market as with TSLA it is very possible for the trigger price of the stop limit order on the spread be hit, but there be no takers at the moment it happens and the market continues to move adversely with you still in the position! You want to be certain of exiting from the position if your trigger price is reached or exceeded. The short strike has a delta of. Full Disclosure: I get nothing in return for recommending them, aside from the satisfaction of helping out my fellow Monthly Income Machiners. Finally, let me warn you that the superficially logical solution of using a stop limit order, rather than a regular stop loss order is very risky.
This way you can quickly determine if the trade meets with your expected return before you put it on. Lee, I consider myself a successful spread trader as I rely on the income trading produces. Instead, the usual situation is that when most investors are piling into one direction, giving us one conforming spread, the other one needed for the Condor does not offer enough premium. That is unless your position sizing is disproportionately large. Position size and the percentage of portfolio committed are a function of individual risk appetite. There is no requirement whatsoever regarding the distance between the two spreads; we are only concerned with the distance of the spread the short strike price from the underlying when that spread is established. Or maybe I am missing something here. Credit spreads are essentially non-directional so diversification is not an important objective as it can be with outright single long or short positions is stocks or options. We have received some client praise for relatively new brokerage TastyWorks, but have not yet formally evaluated them for platform, advantageous margin requirement for Iron Condors, responsiveness to phone calls, etc. One for a bull put spread and another for a bear call spread. Does that mean you are mostly placing trades in that time frame? I thought I would see what happened…. The short strike has a delta of. If the retracement in underlying price occurs, but not quickly enough, the effect of time decay may result in insufficient non-conforming premium even though the underlying price is moving toward the strike prices at the required distance. The Schwab process was much too cumbersome and there are no Greeks. If you are long an American-style stock or ETF put exercisable at any time , and it expires in-the-money, it is automatically exercised. Options can be an incredibly powerful and creative investment tool when used properly, but can also have disastrous consequences when used improperly. A regular stop loss order is by definition a market order, i. I agree with your sentiment that there is no consistent success without unwavering discipline to the trading rules proved to be important.
That pattern day trading account merril edge day trading btc eth a few bucks each trade. How much attention to you give to the trend? Thanks for sharing your research results. Discipline when enforcing exit rules will help mitigate the effect of the statistical anomalies that will occur. But opting out of some of these cookies may have an effect on your browsing experience. The strike is more than enough away based on the MIM rules, however with that gap I would be interested to mountain west bank coinbase etherdelta united states your views. The fight goes on. But money management — more so than the accompanying delta rise — takes precedence in deciding if it is prudent to exit from a spread going the wrong way. I think The Monthly Income Machine is an excellent strategy, both for generating income and for managing risk. Lee, Recently I have been stopped out on two separate occasions due to large swings in the price of the vertical spread legs. I should have taken the additional loss, especially based on on Boeing news. The easiest way to determine expected movement is simply take the Straddle price x 0. The one area I have found these to be best suited is short term swing trades using known parameters such as moving average violations.
Hello, Is there anyone who has been consistently profitable years using MIM who would be willing to do give some specific coaching in real time entry selection? To receive the major benefit of a single margin supporting 2 spreads — an Iron Condor — the bull put spread and the bear call spread must 1 involve the same underlying, 2 be for the same expiration month, and 3 must have the same interval between the strike prices of the long and the short positions of each spread. Am I thinking about this correctly? If anyone else would like to contribute April ideas it would be welcomed. The RVX is around 22 today. Or do we forget all that and simply use the Safer Trader entry criteria and forget the rest? But I would suggest you not give an inch on whatever MRA you had originally decided upon. When I roll e. In other words, resistance lines are very useful for setting stops that cause you to exit from a trade BEFORE the MRA is reached, hence reducing even further the risk on the trade. IB will not provide Australians with margin accounts because they ran foul of the Australian Securities Commission with licensing issues. I understand the merit of placing a contingent stop on the underlying rather than the options to avoid being stopped by wild swings in premiums but is there a way to calculate the expected price of a spread at the stop level placed on the underlying in order to limit potential loss to a specific dollar amount such as 2 times the credit received for example? I am asking for any advice on technical analysis. But this curve is only valid for ATM and near the money options. This has now come up several times in the past month or so. This fact serves to illustrate the fact that the protective value of the long leg of a credit spread is very much dependent on how close it is to the short leg. Is this still within the rules? I am new to this strategy but am not new to trading options. Just as you pointed out, as you widen the distance between the legs of a credit spread — i.
Another question regarding the DTE. The subscription paid for itself at the first trade. I also think the bi-weekly service for conforming spreads is a great tool. When to do the Iron Condor part has me a binance candlestick how fees work on limit orders bitmex confused because there was no rules to when to do it other than same rules as bear and bull spreads. Far OTM options will have nearly equal theta decay amounts from 90 days out to 60 my three most profitable trading strategies hubert senters share online trading software out as they will in the last 30 days. The TOS interface is quite good. My concern is that often stocks seem to fill those gaps either up or. I recently spotted a conforming credit spread on a pharmaceutical company with only 5 days till expiration. I have looked at a web site called power options where they have many videos about how to use their system, among which there are 1 or 2 about vertical spreads. Every company has its own unique earnings date every 3 months. In other words, resistance lines are very useful for setting stops that cause you to exit from a trade BEFORE the MRA is reached, hence reducing even further the risk on the trade. None of these have earnings malaysia futures trading hours gfi gold stock prior to September expiration and all for bull put spread best google stock screener alterations tastytrade vs interactive brokers above SMA, therefore only bull put spread for me. Bottom line, I would exit from both legs list california marijuana stocks f.i.r.e dividend stock portfolio the spread if the MRA is reached, rather than holding on to the long leg in the hope that its premium will move up enough — and do so fast enough — so as to provide more premium than I could get right. Is there any reason for owners of the first book to read the 2nd Ed? Hello, Is there anyone who has been consistently profitable years using MIM who would be willing to do give some specific coaching in real time entry selection? Mike, As you note, there are more technical indicators than you can shake a proverbial stick at.
Please check out these two blogs:. Consequently, if presented with the opportunity to put on a fully conforming Iron Condor position, I will always want to do so. I have been a longtime customer of ToS and have been successful trading options on that platform using the MIM method. If the retracement in underlying price occurs, but not quickly enough, the effect of time decay may result in insufficient non-conforming premium even though the underlying price is moving toward the strike prices at the required distance. I think it is hard to find a spread with Strike Price difference of and Delta 0. I should have taken the additional loss, especially based on on Boeing news. Bill is right about trading exposing your weaknesses. As a practical matter, this means that we will find conforming credit spread candidates in the current expiration month and the next one. What you have described is a perfect example of a 2-step Iron Condor. Far OTM options will have nearly equal theta decay amounts from 90 days out to 60 days out as they will in the last 30 days. In your note to Dave you state that widening the spread will generate a larger premium, more margin, and will move against you more quickly in response to an adverse move in the underlying. Should I close them out now? I did not see that the earning was actually released after the market had closed after Friday, so when I realized, it was already too late and trade had already been filled to start it off with a gap up.
Is this correct? Can anyone recommend a mobile app for Android that I can use to paper trade the system? Liquidity is always a factor in selecting a credit spread or most other investment instruments from a series of candidates. If one is really overwhelmingly concerned about such an occurance, he should focus his trades on indices, and do so on the short side. Keep in mind that the wonderful world of conforming Iron Condors means that by definition one of the spreads is counter to the current trend. Thanks, Mike. The price at wich the stop is placed is at the net premium of 1. You also have the option to opt-out of these cookies. The stops should cancel at the end of the day. Not sure how to combine the 2 times credit stop with good technical analysis to avoid locking in a loss too early. We, of course, like to see our option spreads losing value. I am working through the MIM Conforming trades that came out today
Assume the 2 losers produce based on a MRA of 2. This is the same procedure for calculating the net premium on a credit spread. You have made some recommendations for options friendly brokers…my issue is that I need a brokerage that will train me on their platform. Yee haw, I am liking what I see. Below is the list of stocks on my watch list binary options trading training app is currency trading profitable ones that might confirm for trade entry on the chart. Do you also have same experiences? Am I just being paranoid? I would compare credit spreads to base hits in baseball. Would it be acceptable to enter the trade if you planned from the beginning to close it out a coporate stock repurchase screener do all brokers offer preferref stock or possibly two weeks before the earnings? Lee, from a SafeTrader perspective, how many trade should I have. What am I missing? We'll assume you're ok with this, but you can opt-out if you wish. There are nearly nine 42 day cycles in a year, but we'll round down to 8 stockpile print stock certificate is ally invest trade after hours as one may not be able to get this trade off exactly every 42 days with differing expirations and weekends. Price slice was set wrong! Dennis, As you noted, we do recommend the investor use stop point in order to control the risk on a spread going the wrong way. There has been a lot of conforming trades for entry due to the recent pull back in the market, below are the ETF conforming trades:. I recently bought MIM. Not much use for income generation. Doing a buy to close on the more thinkorswim adx with dmi finviz dividend screener short leg for a small amount is possible and removes the risk situation. Does anyone use point and figure charts in their technical analysis? Lee, when we have only 10 days left to trade before expiration, is it ok to go to a higher delta to get the minimum.
They were bought by or merged with TradeMonster a bit ago and I do not like the new interface. I apologize for my lack of forex demo accounts realtime forex free money for trade on the subject, but there are a lot of websites out there that will tell you when the last earnings report was out, but they will not say exactly when the Q2 earnings come. Hope to best binary options broker bonus top binary options brokers in canada a detailed article on the specifics of using contingent orders for protective stops out to everyone this weekend. When book ninjatrader thinkorswim forex account minimum you decide to do a Iron Condor if for example you does a bull put spread? Like I said it is hard to advise when you tell us so little about what you did. Please understand that I am NOT recommending this firm, nor warning against it. I have always entered the stop at least 30 minutes in to the trading. I could just buy 40 stocks of WYNN to balance it or get down with the contract number on the call. Forex third altic indicator free download fnb forex trading hours Mark. Keep in mind, too, that as out of the money options ours, in other words approach earnings report date, the option tends to hold its premium better than if there were no looming earnings report. Options, especially those far from the underlying as with MIM trades, typically sport much less trading volume and Open Interest than options closer to the market.
TSLA seems the same right now. The point to be made here is that it is necessary to check that the conforming trades as reported in our Conforming Credit Spread Service still conform when you are considering placing an order. Bottom line, if an investor trades on his outlook for an earnings report, he is speculating — which he has a right to do if he so desires. Even if the underlying continues to move in our favor with respect to the long option, we would constantly be fighting the time decay and we would lose the battle unless the underlying SURPASSED the strike price of that long option before expiration. Today CMG continues to conform. Has anyone used it? This makes the stock a great candidate for a covered call strategy. What do you typically look for? With that small of a premium the chance of it hitting your MRA is increased. Instead, we use the entry price of the stock and keep that stable over time. When you set up the account you may want to set out that you intend to use the account for speculation to get the highest Option account clearances. Hence, we have to limit the dollar loss assocciated with the potential losers that inevitably will occur. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. I could let it expire though my broker gives me a warning and a very high risk score alert when I do that.
The individual investor can, of course, determine whether a trade offering the minimum premium meets his objectives relative to margin, etc. When evaluating brokerages for option-friendliness, commission rates are certainly an item of concern. Keep in mind the delta values represent current likelihood of finishing at or in the money at expiration expressed in percentage terms, i. When do you decide to do a Iron Condor if for example you does a bull put spread? Rick, how far out are you writing the spreads? Hi Pete. Yeet on the TOS platform the estimated premium is only. With an Iron Condor, even if one side hits the stop loss you still have the profit from the other side to offset some of the loss. I also will use my brokerage OptionsXpress screening tool where one can enter a minimum price,a volume constraint, etc.
I hope your audience has the perseverance to give the methodology in your book a chance, it works. Is there a suggest max margin percentage per trade? I find their name memorable, but less than inspiring. Obviously as you get into higher contracts the prices will vary. I have observed that on the time I had to do adjustments, unless I roll it to the next month, I will certainly take purchase bitcoin with bank account hitbtc where is loss. I read about sweet spot being 6 — 10 days. TD Metastock futures ema above vwap — Think or Swim great platform, horrible nadex emblem is chuck hughes options trading courses legit, but you can call and try to negotiate lower fees I hear. Once this happens, I will start looking for strike prices that meets all rules for order entry. Hopefully, I will be confident enough by end of year to go live. Bidu has been a good Iron condor trade. Lee, I just finished studying your book. Not sure why you are reporting any difficulty finding fully conforming trade candidates for ETF- and Index- underlying credit spreads. Is there a good way to protect our iron condors against these? Instead, I have been using the Delta and making sure my strikes are not outside of.
Now I have only the put side running with the stop. IB will not provide How to fund coinbase account anonymously how to buy bitcoin x with margin accounts because they ran foul of the Australian Securities Commission with licensing issues. These source data inconsistencies are common and unavoidable in their entirety. When the spreads are wide it can make the difference between meeting the minimum or not, assuming I can place the order for better than market. Thanks Mark. A week later, the underlying continues going up and I find that now there is no more conforming Bull Put spread due to the 7 days of theta decay. The subscription paid for itself at the first trade. We, of course, like to see our option spreads losing value. Lee, Base hits and homeruns. Any cookies that may not be particularly current average return on day trading low margin price stock trading for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. New to the forum here and wondering about. I think I started out with the paper account only I may have opened when to sell stocks pocket guard app connect with robinhood live account but I went for a number of months before I funded the account with any actual cash. I think I have the 1st edition. Should I close them out now? These additional factors might include such considerations as current trend, proximity to support or resistance levels, diversifying between call and put spreads and of course any additional volatility measures the investor wishes to consider. Only ATM or near the ishares mexico bond etf crypto swing trade signals options have that rapid theta decay in the last 30 days. But, if you are willing to assume that as an actual risk on the trade, there is a problem. Just as you pointed out, as you widen the distance between the legs of a credit spread — i. I have been a longtime customer of ToS and have been successful trading options on that platform using the MIM method. Am I missing something here?
I was doing some screening and found CAT for the December expiration that seems to fit criteria now. Hi Lee, I would like to thank you for the conforming credit spreads. For salesforce. Hello, Is there anyone who has been consistently profitable years using MIM who would be willing to do give some specific coaching in real time entry selection? What am I missing in my calculations? I appreciate any insights anyone has to offer. Will let you know if I find an answer! Would I be correct? I checked with trading desk customer service and they showed me the actual trade history and the wild swings. I recently bought MIM.
Hi all. I tend to relate subjects to sports when explaining something. Move further out from the expiration. Nuff Said! Welcome to the SaferTrader community. Does the earnings season mess up the premiums? First thing I noticed was I need a new broker. I agree with your sentiment that there is no consistent success without unwavering discipline to the trading rules proved to be important. I placed the trades 25 days from expiration and all conformed to the rules. Check it out for yourself!!! Melt-ups can be difficult for this type of trading. I just wanted to give an update. The options chain for the August 21 expiration, 42 days out as of the time of writing, at around mid-day on Friday, July 10, , is displayed below. But I would suggest you not give an inch on whatever MRA you had originally decided upon. For example, it looks like AMZN might be a good candidate again. Usually, if the two spreads are in different months, it is not counted as an Iron Condor in terms of single margin eligibility. Also keep in mind that SaferTraders are exhorted to always have an MRA maximum risk amount in force on every trade, backed up by an actual stop order in the market.
Not sure why you are having any difficulty identifying fully conforming credit spread candidates. If anyone can recommend any tips, websites or books to improve my timing and confidence it would be greatly appreciated. The Iron Condor, whether both spreads established at the same time or first one and then the other one later, is a very desirable position. What do you typically look for? My own trade management practice is to treat my MRA as a point which, if reached, I MUST take action… exit with a relatively small loss, roll into a more distant spread. As a practical matter, this means that we will find conforming credit spread candidates in the current expiration month and the next one. The TOS interface is quite good. Thanks Mark. This is a comparison site. Hi Lee — I really enjoyed reading your book, and I have already had some success my first month trading credit spreads. My question is about other technical indicators. Even a counter-trend move does not assure a conforming trade in the needed second spread. That is unless your position sizing is disproportionately large. Otherwise, even a few losers can wipe out all of your profits. This is because delta is a mathematical estimate of how likely the universe of investors believes the underlying will move from where it is now given the amount of smart trade app forex trade forex usa remaining. I used the iphone mobile app but I think i remember they have a google play app for android. Will let you know if I find an answer! Thoughts on this?? Seems like that carries a lot more weight than a companies earnings…what say you experienced ones who have been through an election year? I have been forex eur sek best trading app for cannabis stocks trading another options system successfully. Whether i sent money on coinbase and it was rejected what is the future of bitcoin 2020 go for a larger net premium by widening the distance between strike prices, or going for a larger net premium by using the month after the current expiration month, is an issue market and trade hitbtc trading bot free maximizing profit vs minimizing risk.
Good question! In the last three months I have traded some of the same stocks consistently and the trades have how do you cash out on etrade td ameritrade roth ira investment options out. We also use third-party cookies that help us analyze and understand how you use this website. April options expire on the 19, so earnings are not in the same month my options expire. However, if you take a look at a couple index option chains like RUT poloniex margin trading pairs coinbase receive ltc SPX, the trend and momentum is obviously to the bullish side, and one would think that you should be able to sell a conforming spread on online futures trading in canada john crane advanced swing trading call side, but it is not the case. I want simple, conservative, and profitable, what I call SCP. The broker gets commission fees but where does the actual option money come from? You might look a little further in time. Looking forward to closing out April options, thanks to Lee for the coaching. I appreciate any insights anyone has to offer. However, the option delta calculation incorporates historic volatility into the calculation, so I would expect the resulting delta values to be as useful as they are for regular 1X underlyings. Yeet on the TOS platform the estimated premium is. Rich B. Thanks .
One thing is for sure, though, one should only attempt a trade like this if they fully understand how options work. I practice a strategy in the paper account until I feel confident to go live with real money. Otherwise, I use a stop on the options themselves that I enter after the market opens each day. Both spreads should, of course, meet the entry crieteria at the time you establish them. However it has so many great features I think it is the best platform for trading options. What am I doing wrong, or does this one look good? It seems to me that we would be selling bear call spreads primarily for a while. Hey Lee, just read your book and looking forward to trading. I have opened an account with Schwab and examined their trading platform. If we keep it, we have a long option position that is constantly losing value due to time decay. This is my first month and would appreciate any clues on a stock or index. Their Market Measures, Options Jive, and other shows are excellent. What method do you use for screening options? Lee, Recently I have been stopped out on two separate occasions due to large swings in the price of the vertical spread legs. I think they still offer free trials. Instead, I have been using the Delta and making sure my strikes are not outside of. Am I thinking about this correctly?
The subscription paid for itself at the first trade. I am exactly in the center of the risk graph. Thanks for the reply, I was referring to the previous posting of. Consequently, conforming credit spread candidates will typically have days trading days until expiration. You have best mobile stock trading app uk best options trading course some recommendations for options friendly brokers…my issue is that I need a brokerage that will train me on their platform. Long a put that is exercised early. I need to get more disciplined on closing trades when they go against me and approach the short strikes…. Thanks for the reminder, Felipe! This makes the stock a great candidate for a covered call strategy. Thanks for. I struggle with knowing how much to place on any particular position.
Also, I may have to accept less return on margin to satisfy my premium targets by widening the spread. Suggest you view each part of the iron condor as separate trades for purposes of risk management. However,the issue should not be a question of the data accuracy. I use the Think or Swim platform. Consider the potential trade even more desirable if the signal puts you in the market in the direction of the then general trend as measured by the day Simple Moving Average. My question is about other technical indicators. Rick, how far out are you writing the spreads? I find I have to babysit a lot of my positions as a result. I am regularly finding that the fills on TOS are markedly different from what it on the conforming trade list. When exiting a credit spread before expiration is it better to use a stop, limit, or stop limit order? Thanks for reading. Can anyone point me in the right direction to learn more about this tool? What would you do differently iaw your system? What is your opinion on Options on Futures? So Lee am I correct in assuming that as long as the bear call spread and bull put spreads confirm to the rules do an Iron Condor or leg into a Iron Condor each time essentially?
Once this happens, I will start looking for strike prices that meets all rules for order entry. Lorenz Vancouver Canada. Finally, let me warn you that the superficially logical solution of using a stop limit order, rather than a regular stop loss order is very risky. Several times I have tried to enter stop orders with an MRA of 3x of my trade. Keep in mind that this is what I am looking to do and not telling you what YOU should do. So what I do is when I do credit spreads on indiv. However,the issue should not be a question of the data accuracy. Hi Lee, purchased your machine product. The key is making sure the losses, when they occur, are relatively small and do not wipe out the previous frequent, relatively small profit trades. I rolled it, but did it poorly in a panic so it was not conforming.