Trading Options: Rolling (Adjusting) an Iron Condor Explained!

[@90fulltime1]

This is the best explanation for rolling I have seen on YT. You are a guru

[@tradersflyofficial]

Thank you so much 🙂 Glad you enjoyed the video - don't forget to checkout the tradersfly.com website...

[@efaesfefse9236]

Thanks a lot, much more comfortable with iron condors now. And also learned to sell/buy a vertical.

[@tradersflyofficial]

Glad I could help!

[@xiansu3452]

Good video ! I like the way you show people how the option trade works on paper ! 💰💰💰💵💵💵💴💴💴

[@tradersflyofficial]

Glad you liked it! 😊

[@ShihabPersonalFinance]

OMG this couldnt come at a perfect time, I am in between closing for a loss smaller than max loss, or rolling to next month, not sure what to do, cause next month I could end up closing for max loss, I might not always be able to roll for a credit

[@edmandell3064]

Great Video. I have a Tesla Iron Condor $670--$745 expiring. 9-3-21. I was going to bring up my Put untested side. It's only Tuesday but it seems Tesla is on a bull run. I was going to wait until Thursday to make any adjustments. What do you suggest?

[@tradersflyofficial]

It depends how long you've been in the trade already. Duration is important to know and understand. If it was a 10-day trade then it's different from a 40-day trade. Also if you only have one or two days to go there's not enough premium to bring it up. You have to roll it usually to a further expiration. The closer or shorter the duration to hire the risk in terms of price risk but yes you get a faster theta

[@edmandell3064]

@@tradersflyofficial Thanks for the reply. I ended up keeping the trade as is. Theta decay did the rest. I ended up closing the position for like $4 today just to be safe for a possible after hours run up. It was a good play for me this week.

[@cheemingchan4041]

hi Sasha, thanks for the great video and clear explanation. My question is when the market price is threatening one of the spreads of iron condor, I may face some paper loss, so if I decided to roll that spreads to further price, will the paper loss be realize? If so, system will deduct the buy back cost of spreads plus the losses?

[@tradersflyofficial]

Well if you are rolling it basically is a combination. Meaning you lose on the front month and hope to get it back on the next month. So they just take the difference basically on the roll.

[@zackaryliu]

Hi, Sasha, I am new for the stock trading, which broker is good for option trading ? Because I am using Robinhood , and when I quit , I can’t, and the strike price should be one cent lower then they let me exit .

[@tradersflyofficial]

Think or swim, tasyworks... All great

[@ricardofranco7419]

I feel I’m doing something wrong with my iron condors. I’ve been at a small yet consistent loss since I started trading them (about a month). I try to choose them so that the probability of success (according to ToS) is around 80%. It just seems that every time I trade an iron condor, that particular stock jumps up or gets sold off. Happened with Tesla (jumped up a few hours after I placed the trade because of the new truck announcement) and again with Netflix (has rallied almost 20 points in the last 5 or so trading days). I don’t plan on giving up but I am almost scared on what to choose because I keep getting muscled out of my position by big price moves. Maybe I need to cast a wider profit zone to increase my probability of success...?

[@mikemed4603]

Why not try trading Iron Condors with Indexes and ETF's ,they are less volatile and then you can trade the Googles and Netflixes as your trading improves?

[@ricardofranco7419]

Exactly! I closed my position at Netflix while still profitable and placed a trade with SPY. I got a 20% profit at expiration which was nice. I really want to trade the index but Robinhood doesn’t trade indices and Ameritrade said they want me to get more experience trading options before letting me do so...they said I can’t apply to trade options again for 90 days (February). So I have to stick with spy on the mean time.

[@dipu827]

Hi Sasha, great videos. Started my journey with one of your old videos on how to play earning and swing trade. and now gradually watching all your vids on options. Anyway I have a couple of questions and need your help to understand them. please! Scenario: bull put credit spread If I put a hard or mental stop loss penny above break Even point, then how much will I be loosing, I mean do I loos any of my starting capital or will I be loosing only the premium which I received initial. Also could you make a video on how to handle spreads in a black swan event. I mean your thoughts and advice. Thanks as always.

[@tradersflyofficial]

If you bought a put spread for about $5 then he sell it for maybe $4.95 then you really only losing 5 cents. So basically you're breaking even if you're getting out at break even. There's nothing really different there. Regarding Black swan events it's tough to make a video about this since this is more in-depth depending on your risk management style or strategy and it depends on duration of spreads and many other factors. You have to look at it on a portfolio basis not just a single trade basis. However there's many ways to look at it from buying single puts to shorting or hedging the indexes to just cutting the position completely. They really just depends on what you're trying to do and current market conditions. This would be something better to discover or discuss in a webinar rather than a single small KZbin video. As you notice the KZbin videos are at a basic level. Courses are probably more advanced basic or intermediate and then when we do coaching and mentoring that's at your level or more advanced.

[@dipu827]

@@tradersflyofficial thanks a lot for your quick response.

[@tradersflyofficial]

You're welcome

[@ShihabPersonalFinance]

when you close the tested side, you are confirming a loss, instead of giving the trade a chance to come back in the profit zone, inversion only happens when you bring short put higher than the short call

[@ricardofranco7419]

Well what I ended up doing is closing the Netflix while I was still at a profit (small but still a profit). I think I’ll be sticking the s&p 500 etf (spy) which trades a bit more predictably than stocks and has way less catalysts (just politics).

[@ShihabPersonalFinance]

@@ricardofranco7419 ya thats what i do, iron condors on spy qqq iwm, but im still figuring out when to.manage or.how.to.manage, should.i close losing trades and roll for a credit,

[@bm9322]

This is partially wrong for inversion. If the stock reverses direction you lose the profits that would be gained back by the position that was just closed, while still risking the losses for the position on the opposite end of the trade. You roll up the untested side, but you need to look at the P/L graph to make sure that as the price moves towards the downside you hit your profit target on the total trade to close out