Huh?
Monday, April 2, 2007 at 10:52AM
As traditional Monday's go, I am working my way through the watchlist this week to line up fabulous stocks for everyone to analyze. It is taking longer than expetced since I keep finding reasons to get up and walk away.
I was reading in the comments today a comment about trading Iron Condor's. I pulled this comment from ToS about the strategy and how it has performed over the last 8 months...
Month 8 experimental results in posted by: Tom Preston on Mar 16, 2007, 11:14 am
The SPX settlement 1396.12 was a mile away from the profitable zone of the March 1420/1425/1495/1500 experimental iron condor. The max loss of $2,000 was achieved, which makes that the second max loss for the iron condors in eight months. The iron condor experimental account earned 14.05 in interest, and ended the expiration with a net liq of $8,727. The experimental long SPY position added $45.03 from a .57 quarterly dividend, leaving that positions net liq at $11,142, solidly ahead of the iron condors. The iron condors will need a string of 5 winners to catch up. That's possible, but so is the possibility of the big market moves that kill the strategy. We'll see what month 9 holds.
Net liq SPX iron condors $8,727
Net liq SPY shares $11,142
This discussion is for educational purposes only and is not intended as a trade recommendation.
Recommendation: Thank goodness I don't trade Iron Condors (Hint).
Long: HWCC since I am the most disciplined trader on earth to hold on to a 4% retracement. Ouch.
Short: Iron Condors
I was reading in the comments today a comment about trading Iron Condor's. I pulled this comment from ToS about the strategy and how it has performed over the last 8 months...
Month 8 experimental results in posted by: Tom Preston on Mar 16, 2007, 11:14 am
The SPX settlement 1396.12 was a mile away from the profitable zone of the March 1420/1425/1495/1500 experimental iron condor. The max loss of $2,000 was achieved, which makes that the second max loss for the iron condors in eight months. The iron condor experimental account earned 14.05 in interest, and ended the expiration with a net liq of $8,727. The experimental long SPY position added $45.03 from a .57 quarterly dividend, leaving that positions net liq at $11,142, solidly ahead of the iron condors. The iron condors will need a string of 5 winners to catch up. That's possible, but so is the possibility of the big market moves that kill the strategy. We'll see what month 9 holds.Net liq SPX iron condors $8,727
Net liq SPY shares $11,142
This discussion is for educational purposes only and is not intended as a trade recommendation.
Recommendation: Thank goodness I don't trade Iron Condors (Hint).
Long: HWCC since I am the most disciplined trader on earth to hold on to a 4% retracement. Ouch.
Short: Iron Condors
Reader Comments (61)
I have to decide if I want add to the position on a retest.
I experienced my worst losses with SPX Iron Condors. I have traded Iron Condors on Google, SPX and RUT: You can make a little money, but you need lots of Malox.
I will post my SPX day trading scalp stategy later.
Trade Well,
Glenn
Sarah
P.S. FSLR is looking nice for a possible entry.
Bob H.
Also doing well with X, PCAR on the bullish side and LEH on the bearish side.
Prematurely exited RATE and VIP on Friday, DOH!
Joel R.
California
Joel R.
California
Did anyone take the PSA bear trade? Any thoughts on this one.
David S
Letting X run along with PCP, VIP, CAL and GRP..
thanks again buddy...
Joel, I'm thinking that CME is trying to fake you out. There's no volume there and even though it's up over $12.50 it's only 2.5% and I don't see a breakout happening. If it breaks out, I think the volume will be very large and I think it'll break with a much larger percentage jump (either way.)
Well, I've missed out on X for now. It's way up at a peak and I'm expecting a retracement of some sort. Then I'll have a look at it. I got stopped out of HWCC today as I was going to be away from the computer for the day (I thought.) So, of course, I sold at the bottom. When, oh when, will these trading rules grind themselves into this thick head of mine?
Do as I say, not as I do.
Chris and Catherine
David S
The only good I can make out of it based on the running 8 month track record, is to offset your wins on the directional trades.
:0
Joel R.
California
I avoided CME as well.....too risky for me, better trades out there..
I like the way ATI is setting up...
Man, it's hard to play bounces on CTSH and then watch stocks like HOLX and HIBB break skyward like the 4th of July. Patience is not only a virtue, but the foundation of a trading career.
Also, aren't the Iron Condors a Mid-Major team?
I agree about ATI. It's sitting right on a strong rising support line and just about ready to break through that $110 resistance. I'm so confident in it that I'm tempted to jump in right now. The only down side is that earnings are coming out in 3 weeks. Don't know if that's going to be enough time. Hmmmmmmmm. Anyone got any ideas on this one?
Brett, glad to hear your virtue is intact (patience-wise anyway.) I struggle with my patience continually. HWCC was a perfect example of that today. Got in before I should have and then bailed before I should have. EVERYBODY PANIC!!!! That's my motto.
Just got in from taking the girls riding and am beat (no they didn't ride ME...) so to bed I must go. I'll get up early and get some homework done tomorrow morning. Looking forward to it as I think I smell a good week coming up.
Chris and Catherine.
I took AMX today, but didn't feel the stars lining up. I have a bunch of longs and only a couple shorts on right now. Because of that I only took 1/2 position on that also.
Out of VIP. Got in wrong and needed to cut the loss. If it explodes tomorrow I may get back in.
Everyone have a great and profitable week.
Quote of the day from a co-worker today. "I just closed my GT stock. I have owned if for over 2 years I bought it at 16 something so how much higher can it go" ......
He rode it from 16 to below 10 and then gets out on a beautiful up trend. I just ate my yogurt and agreed with him. I have told him about investools but he says he will listen when I make my tuition up..... Hope it won't take too long.
Todd
Chico CA