How to Construct an Options Trade With a Really Wide Profit Zone

[@smbapplicantross884]

The manueverability/utility of options strategies are incredible. This is a great example of active management adjusting the r/r of a trade. Great video Seth!

[@smbcapital]

Absolutely!

[@jakubnosek146]

Thanks Seb, the adjustment is quite basic. I would be interested why did you choose delta 25 for rolling shorts in this case? (and e.g. not delta 16 as in the initial setup). Thanks!

[@roblentz9200]

In that example, could you have rolled the call buy/sell options closer to the money at the same time for a bit of a premium?

[@scottcarbaugh4296]

Seth When one of the short positions is pierced or even challenged, some recommend rolling the unchallenged spread inward to create an iron butterfly. You collect additional premium and reduce cost basis Of course the downside is you eliminate or reduce the range of profitability as the short strikes are now the same. Your thoughts? Thanks

[@sethmiller5414]

No one recommends rolling the untested side of an iron condor... A sold strangle, sure. For a condor why would you add risk by lowering the defined risk / untested side? The SMB adjustment trade is far superior to your idea.

[@xavierdoisneau3472]

I’ve heard books suggest rolling the untouched side as well…

[@ronsexton3685]

Thanks Seth! Another great video!

[@smbcapital]

thx for watching Ron

[@firstname6208]

Would rolling the calls down $50 as well return the original profit?

[@ryansm3417]

You can also hedge with stock 🌘🌲

[@nc1975]

I think this is the only benefit of trading options verus equities. You can adjust into a profit. You cannot do that with EQ. But the problem with options is that the spread is larger and it's less liquid.

[@nc1975]

Do you know of a way you can adjust you long or short stock position into a profit?

[@scottydog9997]

@@nc1975 Only by spreading out your position across multiple prices. You can't easily buy and sell shares at the same time without two different accounts.

[@edwinbab3205]

I know option what I need to join

[@pelefuentes1988]

See In high iv environments i would rock 16 delta strangles on 45 dte roll up or roll down the untested side for more premium and look to collect 50% credit received on the 21dte

[@pelefuentes1988]

When you define your risk with iron condors research shows it decreases your probability of profit

[@Ramesh151]

Learn to adjust your options trade

[@bhobba]

Adjusting Iron Condors when challenged is always a good idea.