We Studied The Market For 16 Years To Learn This | Market Measures

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[MHN]

This type of content is gold. I love you guys for producing it.

[NotUpdated]

Notes I've taken recently that relate to this video
You need to go naked, after you’ve learned the basics.
Naked collects more premium.
Strikes further ‘out of the money’.
Higher POP (probability of profit)
Manageable - adjustable
3x Theta, and faster movements

Manage before strikes are touched.

[raviv]

I think a better comparison is to increase the count/size of IC to match the margin req of straight strangles before calculating performance. It may be possible for ICs to not have to get to 50% to get the same $ return as 50% or strangle.

Also I wonder how often we get VIX>35. Despite the bear market I don’t think we saw VIX over 35 since Feb 22

[fqtarantino]

Great study, would have been nice to comoare as well 20 delta 5 delta wings Iron condor. Would be very interesting as well to know the statistics with VIX in the 20-30 range and in tge 18-25 range.

[MHN]

What's the best way to determine if you're selling under high IV conditions for short options that are 60, 90, 180 DTE?

[charlesolinger]

If you roll when the short strike is touched on either call or put side. The strangle going to lose way more money at that price than the same price move with a Iron Condore.

[mcop]

Does theta decay faster in either one, or is it the same?

[zaklloyd]

I do crypto options and have found the margin requirement of condors to be 5% of the requirement of naked strangles, but the profit is only 60-70% less.
So, I can do 10 condors with less margin and make more by doing multiple contracts.

[Red]

Yes we know high IV results in higher premium. But waiting for 35 VIX is a waste of time. I would rather see your analysis examine the better payoffs at average IV. I would prefer the same study with a focus on VIX in the 21 to 24 range. That is where the market exists most of the time, not 35. And i am not certain the better plays on done with SPY but perhaps TSLA. Your thoughts?

[kamran]

Can you skew the iron condor by strike width, or does it have to be by delta? I usually set my short put strike at 20 delta, then buy the wings $10 wide. For example, 100/90 short put spread.

[HomoOeconomicus]

premium is too low with 16 deltas, I think at least 20 is more reasonable

[Float_Locker]

Interesting didn’t realize a 5 delta wing would have nearly the same BP requirements as a strangle during high IV.

Great segment 👍🏽

[neuvocastezero]

So, a 13 delta wing is narrower than a 5 or 10 delta wing, how does that work?