My Serious option questions - test123, healthraj and other knowledgable option trader
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Re: My Serious option questions - test123, healthraj and other knowledgable option tr
guys, I would like to know whether we'll be able to square off the previously sold option (or transfer to someone else) before expiry? Or If I sold the option I should hold it definitely till expiry and no other go?
guys, I would like to know whether we'll be able to square off the previously sold option (or transfer to someone else) before expiry? Or If I sold the option I should hold it definitely till expiry and no other go?
Re: My Serious option questions - test123, healthraj and other knowledgable option tr
Hi,
same question i had few months back.
You can exit position any time as you wish, yes for selling option , same for buying . you can believe it, because i've done it.
I'm talking about current month option. i.e. you sold xxxx strike price sep month option , you can close this position anytime before it become worthless.
before 24sep, if there's ask price bidder you can close it, you can always find ask price on 100s of option strike price. like 8000,8100,7500 ...like this.
Thank you
Hi,
same question i had few months back.
You can exit position any time as you wish, yes for selling option , same for buying . you can believe it, because i've done it.
I'm talking about current month option. i.e. you sold xxxx strike price sep month option , you can close this position anytime before it become worthless.
before 24sep, if there's ask price bidder you can close it, you can always find ask price on 100s of option strike price. like 8000,8100,7500 ...like this.
Thank you
Re: My Serious option questions - test123, healthraj and other knowledgable option tr
You can use it beside other tools. Trading purely and only on those two tools is a way of its own. At least for me: Not my cup of tea but there are others who give a bit more of attention to it. If you think you may not like to do the same, you can check the option OI on levels which for example are support and resistance levels in your personal chart. So this will give you a certain idea how strong those levels could be.
Have a nice weekend
You can use it beside other tools. Trading purely and only on those two tools is a way of its own. At least for me: Not my cup of tea but there are others who give a bit more of attention to it. If you think you may not like to do the same, you can check the option OI on levels which for example are support and resistance levels in your personal chart. So this will give you a certain idea how strong those levels could be.
Have a nice weekend
Re: My Serious option questions - test123, healthraj and other knowledgable option tr
What do you want to hear and by the way: Long or short iron condors, traded at once or with leg in, traded in a trending market or traded in a side way market, traded with different expirations with the used options, traded short before expiry or traded in far away months and so on?
https://discoveroptions.com/mixed/content/education/articles/condors.html?useHistory=1
Have a nice day
What do you want to hear and by the way: Long or short iron condors, traded at once or with leg in, traded in a trending market or traded in a side way market, traded with different expirations with the used options, traded short before expiry or traded in far away months and so on?
https://discoveroptions.com/mixed/content/education/articles/condors.html?useHistory=1
Have a nice day
Re: My Serious option questions - test123, healthraj and other knowledgable option tr
Your question is the absolute classical one. How much can I make? Answer to this is in my signature
Any way, lets have a look at it:
The "Iron Condor" ,traded the classical way by implementing all four legs at once, is a low risk option strategy and traded mostly from absolute risk averse traders. Now if you want to increase the risk, as you mentioned "High risk", then you can start to trade them through leg in or by creating them through strategy converting. But I am really not sure if you are able to trade them the more risky way, so we would be back by low risk trading. And what ever book you may did read on them, one of the first facts written and explained in every option trading book is that classical Iron Condors are low risk option strategies.
The next point, especially in India, is the margin you will have to bring to trade them. As you need to implement at least two short legs in the market through the strategy, this amount (margin) increases. Now as you want to trade them for a safe and especially regular income, you should have quit a big amount of money in your account so that you can trade a few of them at the same time because of the capped reward you only can make with the classical IC. This fact you deeply have to consider in case the income would be needed to pay your monthly bills.
Now still: How do you want personally trade them is the main question. Depending on this you then can start to think about any income. If you have a trendy market and you want to come with any IC, you will need to know how to act, as in such month the classical IC will not be of much help for any income, instead the market will even touch your break even points on either end from the IC. Here you must be able to adjust the legs on those side at the right time or convert the IC for example in a "Broken Wing IC". An other point to consider, to know and must understand when talking about income from IC: When do we take profit and how do we take profit when trading Iron Condors? This you have to know and understood in dept, other wise you may end up by end of the month with nothing or only less from the possible anyway capped reward.
Finally:
If you consider what I above have posted, you will be able to make up your own mind about "Are Iron Condors a safe way for regular incomes?"
Have a nice day / Dan
Your question is the absolute classical one. How much can I make? Answer to this is in my signature
Any way, lets have a look at it:
The "Iron Condor" ,traded the classical way by implementing all four legs at once, is a low risk option strategy and traded mostly from absolute risk averse traders. Now if you want to increase the risk, as you mentioned "High risk", then you can start to trade them through leg in or by creating them through strategy converting. But I am really not sure if you are able to trade them the more risky way, so we would be back by low risk trading. And what ever book you may did read on them, one of the first facts written and explained in every option trading book is that classical Iron Condors are low risk option strategies.
The next point, especially in India, is the margin you will have to bring to trade them. As you need to implement at least two short legs in the market through the strategy, this amount (margin) increases. Now as you want to trade them for a safe and especially regular income, you should have quit a big amount of money in your account so that you can trade a few of them at the same time because of the capped reward you only can make with the classical IC. This fact you deeply have to consider in case the income would be needed to pay your monthly bills.
Now still: How do you want personally trade them is the main question. Depending on this you then can start to think about any income. If you have a trendy market and you want to come with any IC, you will need to know how to act, as in such month the classical IC will not be of much help for any income, instead the market will even touch your break even points on either end from the IC. Here you must be able to adjust the legs on those side at the right time or convert the IC for example in a "Broken Wing IC". An other point to consider, to know and must understand when talking about income from IC: When do we take profit and how do we take profit when trading Iron Condors? This you have to know and understood in dept, other wise you may end up by end of the month with nothing or only less from the possible anyway capped reward.
Finally:
If you consider what I above have posted, you will be able to make up your own mind about "Are Iron Condors a safe way for regular incomes?"
Have a nice day / Dan
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