re: Options Trading Thread

Following Brobocop's idea, I got a Option Omega backtesting account and a Tastyworks account.

Have done the Iron condors the past two weeks but about breakeven there as they got busted 2 times this week. Not a huge fan of the risk/reward ratio there.

On the Option Omega forum, there is a user that combines three 0DTE iron condors with one double calendar spread (selling 1 DTE options and buying 2 DTE options), and these trades are only done on Mondays and Wednesdays. Backtested since the S&P started doing daily options earlier in 2022, this strategy has a ~90% win rate and the average winner has a higher $ amount ($853) than the average loser $ amount ($540) (compared to iron condors where the average loser is likely 3-4X higher than your average winner). He has a stop loss in place where if a $5 profit target is reached, the trade closes out if the P&L drops below $2.5. You exit the double calendar positions when the iron condor closes out, so every time the trade is opened and closed in the same day.

Very interesting strategy, as the iron condors profit on low volatility while the double calendar P&L maxes out profitability at the option strikes.

Probably tough to execute in real life though as it's an 8 legged trade. I don't think it's the kind of trade where you can just put it on in the morning and forget about it.