Did the following IC on the NQ. Using intraday spreads.
Buy 4290-4300 in at 4296.8 SELL 4300-4310 in at 4303.8 So to figure the PROFIT Points on each: SELL: 4303.8-4300=3.8 PTS BUY: 4300-4296.8=3.2 PTS So BE on each would be: SELL: 4303.8+3.2 PTS=4307 BUY:4296.8-3.8 PTS=4293 Which would give 7 PTS total and a 14 PTS 1 to 1 RISK/REWARD Any comments and corrections of any mistakes I made is greatly appreciated.
Posted this so a person could post their calculations on their ICs. And, others could give advice, show mistakes.etc. Since for me at least, the math for ICs can be confusing at times.
I think your math on the break even is good. I get a little different number for including fees.
Your area between the break even points is about 7 points, for the 1:1 I think it’s wider at 21 points, if I’m following what your thinking.
On the 1 to 1, went by what Darrell said. Double the profit points. 3.2 and 3.8 would be 7 points. Double it, 14 points.
My observation just looking at the numbers on the spreadsheet for this setup that WMiller prepared
Always look at where your 1:1 stop loss placement will be in relation to the ceiling/floor of the spreads. On the sell spread it stops losing money at 4310, your 1:1 would be at 4313.5, since you can’t lose anymore beyond 4310 I would not use a stop on this and let it just play out giving it a chance to come back in my favor. Same case with the buy spread, max loss is at 4290 but the 1:1 SL area is 4286.5. I love setups like this because my max risk is almost half of my max profit. Max risk in this case with no stop loss needed is $32 if it closes above 4310 or below 4290.
I don’t know how this ended up playing out for you but this is a nice condor.
Peter
Thanks, Peter and wmiller…Did the math with out fees.
