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Morning Mailbag: Iron Condor Management

February 23, 2015

By | 6 Comments

Coach T is back with another edition of the Morning Mailbag! In this video he walks the team through an Iron Condor on RUT.

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6 Replies to “Morning Mailbag: Iron Condor Management”

  1. Jeff Price says:

    Great illustration Tim! This is personally one of my go-to trades. I don’t often run into this problem as they are such a high probability trade in the right market. I agree with the “keep it simple” approach. About 20% of the time you may just have to take a loss on the one side, but here’s the good news, now you are potentially looking at a stock that has picked a direction!

  2. David Barcroft says:

    Nicely done Tim. Just joined and excited to be involved.

  3. Tim Justice says:

    Thanks guys! And great to have you David.

  4. Solon Stephanou says:

    Thanks @tim!!! I forgot to put it in the e-mail, but I mentioned it on the Google group and the clubhouse, but it is with a standard March expiration, so I have a bit of time to ride this one out. Being that I had time left, I was wondering if I should keep my long put for potential added profit, especially if the RUT looks way overextended on the upside.

  5. Tim Justice says:

    Not a bad thought…you’d have to look at the risk you’re leaving on the table if you buy the short put back relative to the value you have left on the long put.

  6. Khurshed Birdie says:

    Good illustration. Thanks Tim.

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