Heard Sosnoff say:
Managed Calendars at 10%-25% of debit paid to improve the odds.
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?
Capital Allocation
Rule of thumb on how much of buying power to use based on VIX:
Out of the buying power allocation, the proportion that should be allocated to defined and undefined risk strategies.
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.
Position Sizing
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.
20 Percent Freedom 