Exploring Iron Condor's Wingspan | Iron Condor Crash Course

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I go by the change in delta. Try to sell 20 delta, buy 10. for a $400 stock like SPY it would be $20 wings. But for a stock like NVDA it would be $40-$50 wings.

BCNeil

For 0DTE I would like to see these numbers… I personally trade 5 wide 0DTEs because they allow for easy adjustments

WillCaban

But normally you adjust your ICs by rolling up/down gathering more premium?

mgilmore

Slide 7 (7:20) suggests that the optional width is $50 for SPY (1/10th of the price) and not $15 as mentioned in the video. It would be interesting to backtest this idea to find the optimal ratio (1/20th, 1/10th, 1/5th etc) instead of a fixed width ($5, $10, $20).

Therefore, is 1/10th of the strike (~$50 for SPY as of 04/2024) the takeaway?

pragmatica

I'm still second guessing my knowledge - I wish Tony would have answered the first question "What's a wingspan, Tony?" - the Iron Condor made of +5175 Put / -5180 Put / -5210 Call / +5215 Call ... does this condor have wing width of $5 and a wingspan of $30? Or is the wingspan to the tips $40? What's the body width $30?
I wish you had used one of your great drawings and detailed the meaning of "width"!

DavidKoontz

How many 21 DTE positions do you put on a typical week?

normfoisy

If trading SPY, $40 WING, how would you mitigate the trades?

seangreen

I opened a Short Microsoft Iron condor today with with a 30 DTE. At 2:55 pm my option dropped 19% but the stock was basically flat today. I'm not complaining but what caused this? I know IV couldn't have caused such a drop ...I'm assuming it's something to do with open interest or volume of trading?

edmandell

Going crazy trying to find the max loss they use to run these backtests. At what point do you close this trade in a drawdown in either direction?

clembisto

Does "managing early" mean rolling or closing at 21DTE or doing those things earlier than 21 DTE?

cz

Yes, but does this work for other stocks? Having 1/10 as the width of wings is almost unrealistic for most stocks and when ur width is wider, your max loss becomes much, much greater to the point where should I just do strangle instead?

Po