Generally skewed strangles does not work as well as 16 delta strangles. Skewed strangles only work during market downturns.
Skewed Strangles Does Not Work
Tag: Strangle
Optimal Deltas For Strangles
Managing IC and Strangles at 50%
TastyTrade discussed how can iron condors be profitable a while back. This is a refresher. Spotted new info as well! Managing 1 std dev strangles at 50% increases their success rate to a whopping 92%!
Different Variations of Iron Condors and Strangles
Iron Condor Width
Wider Iron Condor has bigger losses but higher win rate and profits. Wider Iron Condor behaves like strangles but uses much lesser BPR.
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When To Take Profit For Inverted Strangles
Some times inverted strangles are meant to reduce losses. When total credit collected is greater than width of inversion, we look to take profit at 50-75% of potential profit.
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Inverted Strangles
Good video by Dr Jim that introduces inverted strangles.
Key points:
- First move untested side to same strike as tested strike -> becomes a straddle
- Price continues to move against us. Move option leg that we moved previously to where price is currently (ATM).
- Roll inverted strangle out multiple times to collect as much premium to offset max loss which is the width of the inverted strangle.
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When to Roll Strangles
Roll when strike is breached. Sell strangles at 16 deltas and roll to 30 deltas.
Watch full video here.
Strangles During a Selloff
During a selloff, stick to selling underlying IVR > 50 and managed early.
20 Percent Freedom 