This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". The cookie is used to store the user consent for the cookies in the category "Analytics". These cookies ensure basic functionalities and security features of the website, anonymously. Necessary cookies are absolutely essential for the website to function properly. Here are some tips to use the filtering function to find the best Iron Condor entry points. Options Scanner is designed to find high probability and high return Iron Condors in seconds. Options Scanner Settings to Find the Best Iron Condor Stocks We can do that by picking stocks with high market capitalisation to reduce the risk of manipulation. We also need to find underlying opportunities less prone to large fluctuations. Since we want to sell high and buy low, we need to sell to open at high IV, then buy to close when vega causes the option's value to decay at low IV.
Vega is the changes to options value with respect to changes in IV. So no matter our Iron Condor setup is profitable or not, we prefer to close the trade or roll it to the next month before 14 days to expiration, to reduce gamma risks. Gamma grows when the options are close to expiration, leading to big fluctuations in options value. It is also the acceleration to options prices with respect to changes in stock price. Gamma is the changes to delta with respect to changes in stock price. So we can be patient and earn a profit as time passes without much price fluctuation. Theta is the changes to options value with respect to changes in time.įrom our experience, selling OTM options with more than 30 days to expiration have a predictable time value decay. When selling Iron Condors, we want both theta and vega to depreciate the options prices, so we can sell high price Iron Condors to open, and buy low price Iron Condors to close.
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