Hi all,
Just started doing Iron Condors on the indices but my loss on one side is ALWAYS greater than the profit from the other. I’m putting on trades at night and then letting them run into the morning. My question is: should I just start hedging both sides with cheap binaries? @renzo1 @MATRIXBINARY373 any suggestions? Do you guys do that too? Stop loss isn’t working for me. Thanks!
There are strategies to hedge iron condors with cheap OTM binaires. But the issue there is , unless it is a large expected move, you could be in a spot where one side or both of the OTm binary does not profit and any potential profit from the Iron Condor is lost on the cost of the binaries, without a large move. Or you may not be awake to watch it and take profit on one side fo the binary in time if you are not using a take profit order or the stop plug etc. What issues are you having using the Stop loss feature?
Thanks for the info @skeltonmark. I appreciate your insight into that strategy. I did set stop loss triggers at what I thought was break even but none of them triggered and I was left with more loss than profit.
Also, when I woke up at 6am, ALL sides of the condor were losing on each indices. Is that because the premium was reset or something else?
Thanks!
Basically everything John said is why I have never considered using the OTM binaries. Since I am only hoping to get around $15 per contract doing these… A flat all day market would eat into any profits quite often.
This has been a rough week for the overnight Iron Condors. At least with the NQ, there was hardly any premium at the open. When I first started doing these, I was regularly seeing $95, even $120 PER side. I think Wednesday there might of been $110 total at the opening… Also once Europe opened, the market would move in one direction and wouldnt retrace until the US opened . So trying to get a profit in before the US markets opened would be pretty much be impossible. I think
As for todays loss… The only thing I can think of, is that there was a premium reset. Looking at the chart, NQ was trading around 4783 at 6am… not that far off the settlement price. What time did you take the trade??
There probably be at least one premium reset because looking at the scanner now, even though the NQ has fallen like 20 points… the “losing” side of the condor still has premium
Now is the worst time to be doing IC @COACHJOELGORDON…I haven’t done any this week and prob wont until IV increase some more. There is a time to make money and a time to preserve capital. Now is the time to preserve capital or you can trade directional using IZSS.