Review of "Generate Monthly Income With The IRON CONDOR"

 


Summary

This video lays out in detail how to design iron condors for monthly income.

  • DTE:  45 days - shown to be profitable
  • Strikes:  15 to 25 delta and $5 or $10 wings
    • Should get 25% - 30% premium for the width of wing (e.g., $1.50 for $5 wings)
  • Should spend no more than 5% of capital per trade
  • Trade management
    • Close when hit 50% profit
    • Or, at 21 days
      • Because the gamma risk increases after 21 days
      • Can close
      • Or, if close to 50%, close
      • Or, if not close, but inside breakeven price, wait.
    • Optionally
      • Can roll around
      • Narrator does not generally adjust
The rest of the video shows how Thinkorswim can generate PnL curves.

Upshot

This is a very nice video and shows a very clear, well motivated way to implement iron condors.  It is also presented as a framework in the sense that it can be adjusted per investors' tastes.

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