My Iron Condor Rules

A) using probability of expiring (15% or 10%) for lower credit and higher probability

• Looking for the calls and puts to sell at a .15 or .10 probability (or delta)
• buy the call and put one strike over
• Don't need to adjust the trade
  

A-Plan)

Entry Rules>

Enter 6-8 weeks before expiration
Sell a 10-point call vertical with the delta of the short call <.10 Sell a 10-point put vertical with the delta of the short put <-.08 Enter the entire position all at once, but as two separate vertical spreads for better fills.

Exit Rules>

Exit for a profit when 70-80% of the max gain is reached. This will allow the next month’s position to be put on 6-8 weeks from expiration.

Adjustment rules: when delta of short call= .25, or delta of short put= -.21

1. close out entire spread

2. only adjust once

OR:

>15 days from expiration, adjust when index is 10-15 points from short strike, or delta of short strike=25, whichever comes first.

<15 strike="25,">whichever comes first.

B) TOS

• min 23 to 25 days (or 28 to 32 days) before expiration
• trade last 14 to 17 days
• sum of short call delta (16 to 19) and short put delta (16 to 19) = 33 and 34
• probability of success is the width minus the credit of iron condor
• check the chart, don't be a robot, twist it a little on the chart
• risk on the upside, because the calls moves quicker
• once it is on
• 1> max lost: 15% yeild of the decrease in trading power: width - credit say: getting $3 credit, on $10 width so max loss is 15% of $7.00
• 2> once down 10%, peel a couple off the bad side, down 15% peel a couple off, down 20% peel the last couple off so in average it will be 15%
• 3> take profit at 12% to 16% of the reduction in trading power
• out of the position tue or wed of the expiration week

C) Use technical analysis

D) Leg in
?>enter the short CALLS side when it makes a bounce up at support
?>enter the short PUTS side when it makes a bounce down at resistance

Risk Management
--> put the condor 49 days before expiration
--> adjust when the short Call is at 25 delta, Put is at 20 delta
--> close the credit spread when it is worth at 0.20
--> Achieve 75% - 80% of max profit
--> exit Monday before the expiration
--> CLOSE the trade 4 to 10 days before expiration

Butterfly?