Heard Sosnoff say:
Managed Calendars at 10%-25% of debit paid to improve the odds.
Category: Strategy
Calendars DTE and Management
Short Put at 30-45 DTE and Long Put at 60-90 DTE.
Managing early at 10% increases profitability dramatically.
Pricing for Calendars
Liz and Jenny talked about looking for Calendars priced between $0.80 – $3.00. Also heard them talking about 3 types of Calendars and I am quite intrigued by them!
- Durational
- Earnings – Sounds like an alternative (defined risk way) to using Strangles to play earnings?
- Earnings Setup – I thought this strategy makes sense because IV increases as earnings draw near is almost a certainty?
More Contracts or Wider Wings?
When scaling up, we should consider widening the wings of Iron Condors as opposed to increasing the number of contracts.
Optimizing Iron Condor When IVR > 50%
When IV Rank is more than 50%, collecting more credit (>45% of width of the strikes of the Iron Condor) is more profitable.
Managing Wide Iron Condors at 50%
Managing wide iron condors (20 pts wide) at 50% profit is most efficient.
Chicken Iron Condor for Earnings
Chicken Iron Condors are effective for playing earnings.
Different Variations of Iron Condors and Strangles
How Long Iron Condors Take to Hit 50%
20-delta Iron Condors hit 50% of initial credit collected the quickest (close to 21 days). However, they give the least amount of credit.
How Can Iron Condors Make Money?
Iron condors works because taking profits at 50% increases the win rate dramatically.
20 Percent Freedom 