The Complete Beginner's Guide To Managing Losing Iron Condors

[@optionswithdavis]

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[@ozon8r]

Best explanation on how to strategically manage an Iron Condor on YT. Well done and thank you!

[@optionswithdavis]

You're welcome ☺️

[@BCNeil]

The way I decide if I want to take a loss at 21 DTE or roll... I consider if I had no position in this underlying, would I be opening an IC today. If the answer is no, take the loss. Even if you can roll to a credit, it will usually be small. Chances are there are better opportunities out there. Sometimes people seem to waste months trying to break even on something.

[@loganeer5274]

Thanks for another fantastic video Davis! Undoubtedly, you create the best videos on Options I've seen anywhere, period. Please don't ever stop creating these videos for us!

[@optionswithdavis]

You're welcome 👍

[@fum00A]

This guy is great. No b.s. just useful knowledge.

[@optionswithdavis]

Thanks ☺️

[@ramp2011]

Challenge is in IC, you risk say $1 to make 30 cents (typical). So if one trade goes bad, you need to 3 to 4 trades to win to make it back. More importantly many times you do not wait for the full credit to decay in a winning trade as you may take profit at 30 to 50%. In that case you may need 5 to 10 trades to compensate for one potential loss.

[@johnp7739]

Yep. It's still possible to be profitable, particularly if you close some losing trades before they hit their max loss. But very few people will show their complete track record (winners and losers) so you don't know. You just see winning trades, or hear about the time they had 5 winners in a row (which could be taken out by a single bad loss like you said).

[@abhayrohit]

very hard to make adjustments at the end of contract experies, gamma blasts increase premiums instantly where it's not possible to adjust

[@dustinrose-b4z]

Davis, appreciate you sharing this information very much.

[@optionswithdavis]

You're welcome!

[@Tradingshed]

I watch all of your videos, they are the best on You Tube. Well done and keep up.

[@optionswithdavis]

Thanks 👍

[@EyalMaoz1]

Hi, thanks for this excellent video. You mentioned you have multiple trades on at the same time on these ETFs. Do you have a video giving overview of your approach to this, when do you open another position for example? Thanks Davis.

[@mandyll]

Another really helpful video! Love your detailed explanation and looking forward to your next video!

[@optionswithdavis]

👍

[@darrenmc5424]

Hey Davis! Thanks for another great video. Have you heard any ideas on what the 21DTE equivalent would be for a 0 DTE option? Just using simple math, I’m thinking just before 2 PM? Or is this totally apples and oranges!😂

[@דודסולומון-ט7מ]

Hello If price over put short strike can I roll down all IC to make a price in the centre of IC instead roll down untested call side? Thank you

[@ron403b]

More confusing than most of your videos, Davis. Thanks, I value your videos.

[@jeremypursley4349]

I like the way you explain 👍🏻

[@optionswithdavis]

☺️

[@alexanders4874]

Thank you for the very useful content. I have one question concerning your statement that you manage up to 20 positions in the same etf. How do you manage the risk of a severe market crash where a lot of these positions will be hit?

[@chessychesster2107]

Thanks for yet another valuable video! This is a great follow-up to the one you did on credit spreads. No one teaches options like you and I've already made more money from your youtube videos than many of the paid courses I bought. Should have found your channel sooner before I wasted thousands of dollars buying those useless courses. What you teach goes more in-depth than the courses I bought. I hope you come out with some paid program soon so I can buy it because I know it will be good!!

[@optionswithdavis]

You're welcome and appreciate your support as always ☺️

[@RaviBaldev1980]

Thanks for this. What is your IC loss threshold... 50%? Or do you cut losses usually well before you lose half of your IC credit?

[@optionswithdavis]

You should always be prepared that you could lose the max loss of the trade.

[@wongtmg]

Thank you Davis. Great video

[@optionswithdavis]

You're welcome 👍

[@enricosaccheggiani3192]

Thanks for this interesting video. I am trying to figure out when is the right time to intervene, whether when the price touches the break-even point, or whether when it touches the sold strike or even before. I think there is no definitive answer, theoretically at the break-even point there is a 50-50% chance of winning or losing, although if the stock has a trend it is easy for it to continue. I think that arrived at 21 Dte you have to try to roll for a positive credit, so as to lower the risk.

[@optionswithdavis]

You're welcome 👍

[@jjjbossjjj]

how do you decide btw SPDR and equivalents like SPX? Thx!

[@johnm3844]

Hey Davis will you ever do a video on other market neutral strategies like the calendar or double calendar spread? If not then please consider doing a video on why calendars/double calendars are inferior to iron condors. Cheers

[@optionswithdavis]

Will certainly consider your suggestion 👍

[@johnm3844]

@@optionswithdavis personally I pick iron condors over double calendars when IV is high and vice versa when IV is low

[@jesusventura2509]

Excellent thanks

[@optionswithdavis]

You're welcome 👍

[@adamnarbeaux5898]

The only issue is that once you get into the 15 delta range, for 30-45 dte, there are No options 10 points apart. Only 50. What do we do?

[@C4pt41nK4ng4r00]

Just a quick question, not sure I got the "21 day" part, you want us to sell the strategy during that time? Could you please elaborate. Great video btw, thanks!

[@adamnarbeaux5898]

Excellent ❤!!

[@jjjbossjjj]

hi bro what app do u use for the options payout charts?

[@jasonpermanna308]

there is no app just base on major news like cpi,ppi,pce and earning

[@ludovic1368]

what config you using for your stochastic indicator? you are using only 1 line. thank you

[@optionswithdavis]

kzbin.info/www/bejne/rabFhKenqddlbdE

[@elynno9911]

Looking forward to view ur videos on staddle n strangle management

[@luiggi0102]

How far do you choose your expiration?

[@optionswithdavis]

Explained here: kzbin.info/www/bejne/f4Gwq3eGgNV-lc0

[@ih8954]

If the market goes quitw deep outside the b/e zone and dte>21, what should we do? Do nothing hoping the market goes back into the zone, or close for loss, or rolling out to a longer dte with the same strike price? Please advise..

[@optionswithdavis]

Explained here 11:28.

[@jash9897]

Do you rather take more trades at the same time on the same index/product, or rather have the same amount of simultaneous trades but in uncorrelated products?

[@TBradFashionModel]

Did you see the video from Tasty about managing between 21-24 days.....sweet spot.

[@ayeshash2001]

Excellent video! Also it was good to know when you could possibly get assigned in terms of 21 days to expiration window. I have a situation with Tesla iron condor that is way ITM on the call side. 210/215 and stock is at 260. In my opinion Tesla price is not dropping below $220 in the next couple of months. Given that, should I roll out the call spread to a further date & close out the put side if there is a credit? OR if no credit, then either take the loss or roll out the entire IC and adjust the put side by rolling up? Thanks

[@johnm3844]

Take the loss and move on. Take this as a lesson to not do iron condors on directionally volatile stocks.

[@ayeshash2001]

I did exactly that. Thanks

[@coconuttcp2574]

Hi Davis, One of the channels I follow (besides yours of course) is Maverick Trading who claimed to be a prop firm, and one of the common strategies that they employed is Diagonal spread but they did not explain the mechanic of it, would like to have a lesson from you if possible. Many thanks

[@optionswithdavis]

A diagonal spread with a ditm long call is also referred to as the Poor Man's Covered Call (PMCC). I already have a few videos on it here: kzbin.info/www/bejne/oWOZdmSAbpiDd5Y kzbin.info/www/bejne/o5i8c5qijdaapqM

[@coconuttcp2574]

@@optionswithdavis got it! Will revisit those sessions again, many thanks 🙏

[@optionswithdavis]

👍

[@echolitis]

Can someone please help me understand this, Is there a way to turn off Margin investing on webull for Level 3 I just want to use my own money. I don't want to borrow money. But I still need a margin account for level 3 can someone please clarify this?

[@knappoleon]

which tool/website do you use for the profit graph? thanks

[@optionswithdavis]

This is using the Tdameritrade platform.

[@edmandell3064]

So I'm assuming your contracts are 30 DTE? And you manage the option in the first week?

[@RAMZIAARON]

its 45-60 days-ish

[@smokey4148]

Amazing video thank you!

[@optionswithdavis]

You're welcome 👍

[@ddfdsfvsdfsdfs2374]

Trade spx or xsp - no assignment risk

[@NosetoTails]

I am.never given an option to roll a credit