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re: Options Trading Thread

Posted on 4/27/23 at 1:10 pm to
Posted by bayoubengals88
LA
Member since Sep 2007
19098 posts
Posted on 4/27/23 at 1:10 pm to
quote:

But with credit spreads and iron condors (which are really just two opposite credit spreads layered on one another),
Thanks, that’s what it seemed like but wasn’t totally sure. I was going to ask here

So if an elevated IV stock remains within the walls of an Iron Condor that’s when the most money can be made?
As opposed to a low IV stock staying between the Iron Condor..?
Posted by bayoubengals88
LA
Member since Sep 2007
19098 posts
Posted on 4/27/23 at 1:46 pm to
4 for 4 this week on 4/28s
MSFT +97.78%
AAPL +68%
ROKU +36.8%
V +23%
Posted by Jag_Warrior
Virginia
Member since May 2015
4155 posts
Posted on 4/27/23 at 2:03 pm to
quote:

So if an elevated IV stock remains within the walls of an Iron Condor that’s when the most money can be made? As opposed to a low IV stock staying between the Iron Condor..?


By golly, you’ve got it!

High IV generally means richer premiums at a given delta. Relatively high IV percentile means the probability of IV contracting is greater than with a relatively low IV percentile.

That’s why these earnings trades are so profitable. IV gets elevated and then there’s (usually) that sweet IV crush right after that deflates the short options = we make $. And sir, you’re having an excellent week.
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