hey all. i searched the forum, but didn’t see anything, so please forgive me if i’m repeating a topic here. i watched several webinar videos of dm explaining condors. i’ve been practicing for a while now, but i’m not sure i’m getting it quite right. i.e.- say i want to sell a nasdaq spread that is 7420-7460, & buy another that is 7380-7420. the total premium is 222. when i buy the binaries as insurance, do i: a. purchase 22 points in both directions from the spreads’ midpoint of 7420? b. purchase 22 points in each direction based on the price i paid for each spread? c. purchase 22 points in each direction based on the current market? i feel like this is important to know because the market seems to move before i am able to do the math to figure out if i’m actually going to make any $/purchase the contracts, & then my condor ends up being lopsided. should i just set limit orders, & if they don’t get filled, then that’s a good indication that i’m not reading the chart correctly, & shouldn’t have done a condor in the first place? also, if a condor goes against you in any direction, & it’s been consistent over a few hours, when would you say is a good time to get out of the losing spread, given markets can still change in a matter of minutes? many thanks!
