Webinars
Occasionally I record a video as a stand alone lesson.
Those are collected here, under the general heading: Webinars.
Links
W10 Oct 11, 2011. Basic Rookie Questions
This ‘new’ webinar consists of two previously published videos:
W09 Sep 25, 2011. Risk and the Greeks
W08 Sep 10, 2011. Broken-Wing Butterflys and Iron Condors
W07 Aug 19, 2011. Adjustments: Conversation for the New Trader; and The Kite Spread as an Adjustment
This 50-minute webinar covers the idea of using the kite spread to adjust an iron condor position. It also has an important discussion of adjustments in general and guidance for the new trader.
W06 Aug 17, 2011. Can You Earn A Steady Income with Options? The Career Plan
W05. July 30, 2011. Position Size
W04. July 26, 2011 Master Plan for Traders
W03 Ratio Condors
W02 Adjusting option positions. Introduction: Philosophy of adjusting
31 minutes
W01 I sold puts; now what?
Great video Your philosophy is a little bit different from what I learned I always try to stay in the trade longer and I’m not sure I could spend more on my adjustment than I received, that might be tough. You’re use of risk graphs was insightful do you pay much attention to how you your greeks change after the adjustment?
ThanksMark
Mark,
I admit that y philosophy is different in several key areas. But I am not out to convert you. By considering alternatives, you can decide which makes more (dollars and) sense to you.
I do look at the greeks before and after adjusting. That may convince me that I require a larger adjustment. But most of the time the adjustment chosen serves its purpose.
Regards
W04. July 26, 2011 Master Plan for Traders
Both videos cut @ ~13 mins.
Thanks for the alert.
Will look at it asap
FIXED.
Videos are now complete
Regarding WO4 Master Plan for Traders, you mention you normally do not consider a condor less than $2. Well, unless I am trading NDX or one of the other high octane indexes, it is quite difficult to find a $2 condor in SPY or DIA when I am looking at 7 to 10 Delta. Therefore, should I consider twice as many $1, condors. I have the time to manage them daily, and probably would be more comfortable. I did run into trouble on my paper account with NDX, and found it to be very expensive to adjust, and with lack of experience ended up in a position on NDX that exposed me to $75,000 maximum loss. I did buy some puts because it looked like NDX was going to touch resistance and come down – which it did. So, I got lucky and made out OK. Had it decided to break through, I would have “fried” my paper account. A great lesson – don’t just adjust to adjust. Look at the whole picture.
Sorry I missed the 2 sessions last week, but they were too late for me. I did watch them both, and really liked the second one. It touched on lots of things that were new to me, and I found very informative.
Best regards, Vern
By the way, when your mike gets too far away from your mouth, the sound breaks up. When you periodically adjust it, the sound improves drastically.
o
Hi Vern,
There is not much I can do about the time of the live sessions. I will be sure that you get the chance to attend ‘live’ some of the time, but after the market closes in NY is the most popular time – even other European Members.
Thanks for the ‘sound’ advice. That has been an issue, and no one has mentioned this solution. Merci.
Glad you found new material to think about. If you want additional clarification on anything, just ask. The forum is a good place to ask. I cannot speak at the knowledge level of each member at the same time and I am always happy to provide more details when needed.
You are correct. When I collect $2 or $3 for iron condors, I am referring to one of those high octane indexes. I apologize for not making that clear. One SPY option is essentially 1/10 of an SPX option. Thus, to get the same $2 premium using SPY, you trade 10 iron condors, collecting 20 cents for each. For many traders, that 20 cents seems to be too little, so they chose to trade $2 wide spreads instead.
Similarly, 10 IWM contracts is the same as one RUT option and 10 QQQQ options equals one NDX option.
Definition: “$1 iron condor”
To me, that term refers to an iron condor in which the strike prices of the calls (and the puts) are $1 apart. It is NOT an iron condor for which you collected a premium of $1.
Regards
You speak of Delta neutral in making adjustments.
Is the actual delta neutral mean creating enough Delta to
match the original Delta when you put on the trade?
Your view on risk management should be required
reading by every trader.
Kamerling,
‘Delta neutral’ refers to a position with zero delta. That’s not very practical, so delta neutral simple means that the position has no market bias and the delta is very near zero.
The ‘original delta’ is supposed to be dear zero – but once again, when choosing the strike prices that we want to trade, we may not be exactly at zero delta. Also, as skew changes, IV for each option changes and thus delta changes. Thus, don’t think much about that ‘original delta’ other than this: Is this position ‘neutral enough’ or would you prefer to begin the trade with fewer positive or negative delta?
What can I say? I agree with your final paragraph.