IRON CONDOR-option trading strategy

L

lokanathpai

Active Member
#143
#143
When selling options I require to know when to adjust.
Adjustment is done to REDUCE RISK/LOSS and it may culminate into profit.
In spread trading we have defined risk-MAX LOSS concept
By adjustment we can make less loss.
By employing IRON CONDOR or CREDIT SPREADS we are achieving more than 70% success rate.
Our profit every month may be 3-5%, i.e. 8-9 months a year.
We also should take care that our losing months should not erase our winning month's gain.
Making loss is inevitable in any kind of trade.
We should strive for making less loss.
So we have to take protective steps in right time.
I was browsing internet for a suitable tips on this aspect and I came across 'OPTION ALPHA'
http://optionalpha.com-Knowing when to adjust an options trade or NOT.
His tips appealed to me. He has given 4 types as under:
1. Delta reaching 30
2.. Delta reaching 40
3. Making Loss Twice the credit received
4. Underlying price reaching long strike

Do you have any suggestions regarding when to adjust? Please help.
 
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