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When Should I Put On an Iron Condor

Saturday, April 12, 2014 EST
In the TastyTrade video below Tom discusses making it a goal to collect enough premium that it will add up to 40% of the width of the strike. He also reviews some examples of successful trades and states that typically 67% success rate is an average target to shoot for.

Example: If the spread on the strike is $5 look to collect at least $200, if the spread is $1 look to collect $40.

Another great point of the video were results discussed on three stocks and how the overall success rate was higher when IV was high (using further OTM options) and at least and IV at 50% or greater.

Screen Shot:  Trade Results when IV is high
 


Video: When Should I Put On an Iron Condor

Option Sceener Setting Window Update

Wednesday, April 09, 2014 EST
We recently emailed that the way the values are entered in the ROI Entry field will be changed to accommodate Covered, Naked, Credit Spread, and Iron Condor searches.

I. Notice the setting window in the screen shot below:
  • Min ROI%:  The way this field works remains the same. Enter a percentage amount. Example 0.25  would equal 1/4%. The number 2 as shown below means 2% minimum return.
  • ROI Amt:  This is the minimum amount of return entered in dollars. Example: When searching for Naked Puts and you want to make at least $25, enter 25.
The setting window as shown below is for a minimum ROI% of 2% and minimum ROI Amount of $150.   See the remaining screen shots with options for Amazon.



II. Covered / Naked Results Grid: Added ROI AMT Field



III. Credit Spread Grid:  No Change, the MAX ROI Amount field was always there.

III. Iron Condor Results Grid:  No Change, the MAX ROI Amount field was always there.