An Easy One Day Options Strategy

#IronCondor #OptionsStrategy #optionstrading

[ACR]

You’ve been currently running a free options class for over 2 years. Just call it a video. Thank you for the info.

[Budulai]

As a beginner trader, this video makes me feel like options trading is very easy. Thanks for all the comments here that give a better understanding on the risks of trading with iron condor strategy (or any other options strategy).

[andrewjohn]

Anyone who trades SPX knows that those "fills" in this example are impossible. SPX only fills in $0.05 increments. Unfortunately, these details are important, and detracts from the credibility of what is being presented.

[JacobDayeh]

Stop saying EASY, trading involves risks.

[RetailInvestingTrading]

Seth, as you set this trade up and as the market moved up, did you scalp the condor ? By that I mean, removed/closed the put side of it as it approached the call resistance level and then when it bounced down and moved to the downside closed the call side ...

[WilksMusic]

Don’t options actually stop trading at 4:15?

[tonyt]

The expiry is actually June 17th, not 16th correct? This trade was entered as a day trade.

[waltertarghetta]

I estabilished a similar play on $TSLA yesterday, as I identified valid supports (995-990) and resistances (1025-1030) that held and saw weakness after past days' rally; closed the position out today at 2 pm cashing in nearly the whole premium received upfront.

[thealchemist]

This strategy is actually fairly viable as I have been using for quite a while. However, this is definitely not an easy one. The statistics basis is that the market tends to fluctuate much more time than form a big trend, meaning the strategy is profitable if you execute it firmly and every day (or you have good filter to screen out some days) and losses are unavoidable. SPX is good for large account but if you have small account (which can still avoid PDT rule), you can try to use SPY. To increase the success rate, you can use high/lows in the range from the day before yesterday to the current day pre-market hours.

[jamessoriano]

a.  The Initial Resistance Zone and the Initial Support Zone.  Why “zones”?  Why not just find the high and the low of the before-market futures and use those points for the short strikes?  The trader can discern the high and the low but how does he figure out the high "zone" and the low "zone"?  The two zones seem to be conveniently 10 points wide.  That sounds a bit too tidy for an everyday occurrence.



b.  In the example, SPX fell for most of the day until it hit support and then bounced up again near the close.  In real life, does one expect the trader to just hang in there as the close approaches and the short put looks like it’s in jeopardy?  Where is that famous SMB advice about taking profits in such a situation?

[slippinjimmy]

this is more of a gamble trade than investment. Personally I only trade options on stocks I won't mind owning because at the end of the day you can't beat the power of naked puts and covered calls when it comes to great stocks. iron condors are fun to play with though i will say. its almost like betting the favorite on a sports game when used correctly.

[raymondrojas]

Thanks for this great video! Easy to understand. However, I'm confused about one thing. If all four contracts expired worthless, how exactly did I make a profit of $1, 013 on those trades?

[BillGraper]

I want to do an iron condor, and then simultaneously do a binary straddle on Nadex. I still have to look at the prices on the same day expiration S&P500. The Iron Condor would have to be pretty wide. Then the Nadex OTM binaries would be pretty cheap. My goal is to combine them to create a can't lose situation. I'm just starting to put this together. I'll eventually find out if it's possible.

[jakubnosek]

General principle is OK - but IC for Delta 30? Very risky... I would expect that there was adjustment when market went to 3107...

[michaelabate]

Not in love with this one; even if its successful 60% of the time you lose money

[ibistrade]

Seth - Iron condors this close to price when ATR is above 60 is dangerous. Today (Fri, 6/19) had an extended move down today. What technique(s) do you recommend for defending the side of the condor when price approaches that short strike that does not involve rolling to a future expiration (I don't like that method for several reasons)?

[EvanEvansE]

So there's no assignment risk with index options? Does that mean you can sell them without any margin requirement?

[chrisa]

so heres the issue- most people who have traded for 5-10, 15 years preceive these things differently using words as "easy, quick, simple" are the only thing people actually look at. Before you even touch options you should have a huge understanding of how/why stocks move. If you have no idea what spy/spx is or even the Dow jones for example you should never touch options. calling this strategy easy is like having a master level gunsmith shoot a moving target. when someone else cant even hit a non moving target. Easy is what one person sees it as..

[rpuggal]

Nothing unique about this strategy I do this every week. There is a risk of gap up or down so it isn't free money like the video is claiming . The risks have not been identified at all !

[douglasteachout]

SPX is called the "widow maker" for a reason. It is much too large an instrument for beginners (even non-advanced) traders to trade. Iron condor trades are well known for blowing up accounts. Beware this strategy!!