iron condors

[chopper]

Hello, I am currently trading spy dec5 09 quaterly ic, 114,116 calls 107,105 puts got in 11/8 credit 98 5 contracts. I'm up 105 looking to exit@ 70% of credit recieved or ajust when my shorts get to 45 or so. anybody else trading ic's

[Mojo]

Yep, lots of folks trading ICs here. Mostly on the RUT. Based on my rules I would be exiting (or already exited) a Dec IC to avoid the gamma risk during expiry.

Are you planning on holding through expiry?

Mojo

[azrad26]

Isnt SPX better than SPY from both a tax treatment perspective AND commissions perspective?

[MatthewHaley]

Yes,

As long as you are willing to wait to get the fill tha tworks. It doesn't help if you have to give more than a dime or so to get a fill. This is the same relationship for tax and commissions as the IWM to RUT.

Matt

[biggreycat]

yep liquidity seems to be an issue on SPX, at least for me when i tried iron condor on it. waited really long to get filled, and even after lowering to the bid too! i was attracted at first because of the realization of less commissions on essentially the same underlying but decided to switch to RUT now instead for the liquidity and so far that seems ok.

btw, when you say "when my shorts get to 45 or so" what are you referring to?

[chopper]

When my delta has changed by about 15, ( if my short was 30 and it is now 45 or 50 its decision time, price is moving closer to my short strike and I'm starting to lose on the trade.

[Charles Mudd]

Folks,
I also do verticals on RUT. I don't do ICs but I will have both CALL and PUT verticals on RUT at the same time. I do swing trading where I sell a vertical an then if there is profit, buy back the vertical in two or three days and wait to sell the vertical again.
I have been trading for over 5 years and this is the first time that I am in complete cash. I have already gotten in and out of my January verticals a couple of times but now it the market is not offering enough of a premium to match my rules. Is this because of the slow down in trading during the holiday season?? Is this because of low implied violatility??
Matt you can jump in any time here and tell me why I am in cash (Yep I know cash is not bad but it is not making me any money!
Chuck

[MatthewHaley]

It may be because there is no fear right now. The VIX has broken below 20. Low fear == low premiums...

Matt

[awtrader]

Chuck -

Have you gotten back into the RUT since volty has picked up?
(Or are you just looking at Tax Liens and such that you mentioned elsewhere?)

-aw

[Charles Mudd]

aw,
Never did the tax leins --- took too much time.
Am doing RUTs but for February only the PUT side. My rules have not let me get into the CALL side yet.
Chuck