For anyoneeee out there that knows, i have a question about Iron Condors in options trading.
So in my picture im using thinkorswim. Can someone tell me why when i move the 2 'sell' spreads closer to the 'buy' ones, the profit analysis turns into this magical condor where my max losses are only the cost of commissions, and my max profit is the full price of the credit for the condor??????
It seems wayyy to good to be true. Whats the catch here?
see all the blue under the 0, those are losses, that's why.
>>999328
yeah but like i said, according to thinkorswim and this chart the most I would lose on this trade is the cost of commissions, which is like 40 dollars. Yet if i actually let the options expire I would make 880 which is the exact cost to get in the trade. Its so weird
No catch.
Fairly Low Probability of Profit however.
POPs in the 60's usually
https://www.tastytrade.com/tt/shows/strategies-for-ira/episodes/iron-condors-managing-winners-11-02-2015
Also 4 legs in and out so fairly expensive. $28 per trade at typical rates. Can be cut to $22. with a phone call mentioning dough.com.
So you're at $720 max gain - $ 110 commissions w/ $160 risked
It gets a little better if you learn how to invert.
If you like condors you should check out the Double diagonal. Same thing 3/4 the commission.
>>999385
are you martin shkreli?
It's amazing how many different ways of losing money people are able to find.
Get a job, OP, or get a real trading training.
>>999604
>trading training
>real
Pick 1. You probably fell for the Tim Sykes meme and paid $100 to that Jew that runs Big Mike's Trading for webinars that are free if you know what Google is.
>>999409
If you've got a full margin account...
Generally Strangles have better probability, with occasional bad drawdowns. the general setup with 1 SD is 70+.
Better with proper management.
Check out all the different strategies on Dough.com to see the standard deviation graphs.
Naked 1 SD puts have 70% POP,
Jade lizards have high pop w/ no upside risk.
Your strategy depends on your assumptions, about direction but. but most are better than 50/50 stock bets.
>>999799
Around about straddles. What are their POP?
>>999800
Straddles. quite low. 52% to 40%
