Thursday 23 February 2012

New Take, Old Strategy

Just sat through another options video- I get a lot of trading emails for free and I am never dismissive of these guys,they often have a valid point. The latest one simply suggested an iron condor where reward = risk. So on a 50 point short spread,you will take in a total premium(both sides) of 25,thus the risk in worse case is 50(-25) = 25. Will have a look at what strikes and how far OTM this would require,but when markets are flat,or showing nice S&R, this looks a useful trade.

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