A Tasty Standard - 45 DTE SPX Iron Condors

sitting on hands...I want to see what markets do early next week. I expect next week to see JBiden dropped from the Dem ticket for POTUS. What happens after, we'll see. Markets might not care...

fought the calls for a month or two now looking down the puts after the biggest down day since Dec 2022. Still 23dte and there's a FOMC to endure, heavy earnings the same week. Trying to hang in @ Aug16....

102 pt range, so far, and it kind of feels like a dull day. Probably about 2x the expected move. So much for summer doldrums.

debating whether to try to hold on thru next week, where there's megacap earnings, the FOMC, and the NFP....a doozy for volatility

I'll see what's what b4 the FOMC

been watching the gap below 5400, it'll fill this week if some more megacaps get whacked, but I'd rather see another slow grind up to 5600 over the next couple weeks.

A wild ride, indeed. I need a bounce Monday, but will be forced to roll either way, as the puts are itm. I closed some of the 5700/5725 calls for 50c, in hopes that I might sell them again on a bounce. Trying to hold on to Aug16, but if I roll I'll go out to a Sept date b4 the FOMC. I think selling calls will be safer for the next months, as vol going into the election will persist...

I'm still in Aug 16 IC, after a couple more rolls now @ 5365/5340 puts, 5475/5500 calls. Dangerous plan is to ride it out until expiry. If I can do that, I'll make $8-10. Counting on a pullback off econ data Thursday, a bit of stickiness going into Aug opex.

gambled, lost. probably about $13 loss, all told. tied up bp for months. fiasco. putting ICs back in the box, to use in different market conditions. or never. A Fool must learn from his mistakes. If a Fool persists in his Folly, He will become wise.

Hey I am working on a trading bot that uses 0DTE Iron condors. you seem very knowledgable. Can I chat with you for a second?

I don't normally look at the factory forum since I trade options so I didn't get back to this.

I am still trading SPX credit spreads, occasionally. Never IC's; only bull put spreads, put on after a good drop, preferably after a multi-day drop. So, yeah, lol once in a blue moon. Have had success lately, though. Lucky I wasn't in one last Thursday - those are the kind of days that'll fuck you good. Friday, though, was a good example, where I sold 11/28 6250/6225 for $2 and bot back for $0.85 within 2 hrs. That's the way....

Well, I named this tread after the standard old school 45dte ICs popularized (on the web anyway) by Sosnoff et al at tastytrade. And that' ok. In fact, the method there - 45dte, manage at 21 dte - that can be scaled in or out in time. So, I like to do them on about a month cycle. 30dte, manage somewhere 10-15dte, rinse, repeat. IVs have been elevated in the Trump era, so ICs have been paying pretty well. I like to have these running in the background while I am trading shorter-term strats, down to 0dte stuff.

Anyway, it's mid-month and I'm looking at a new entry (lol, well I don't really mind the calendar, actually - I just cycle thru as I need to...). I am usually 20wide somewhere between 10 and 15 delta for the short strikes. SPX only. I am watching SPX on its vertical run and I might like to sell into that early next week. So, I might sell the put condor tomorrow and then leg in to the calls later. Or I might just put on the whole IC Friday or so. I usually don't leg in.

I'd like to net 1:10 total on bp - so, if I put on a 10-lot 20wide IC, that'll eat $20k in bp, so I'll want to net at least $2k. This means the initial set needs to be like $3.5k - $4k. I try to roll the untested sides for some profit but I'm also watching out I don't get my pecker shot off in the wild swings.

The example shown is 30 dte, 20wide, puts at 12 delta, calls at 11. Net credit $3.4k on $20k bp for a 10lot. Just for perspective, I limit my bp usage to around $100k. I have a pretty good sized 6fig cash account, with portfolio margin, but I'm trying to survive also.

In shown for $3.30 net credit, will be watching the call side for a fast dump. Calls is where the best money will be made. I'd like to net $2k...let's see if I can do that in short order

This is great setegey

A week in & still sitting tight. Relentless bull run but the puts have only made about 35c. I might roll them up if SPX would turn down some. Calls at 7360 = 250 pts away seems like a stretch, but of course it's not in this historically strong bull run for the semis & other tech stocks. Have been looking at hedge trades for the call side but will wait til next week to see what's up with the war etc.

CBOE broads talk Jade Lizards, an IC variation that offers upside protection. For a market that always goes up, why not? You don't have to park shorts at the ex-move. You don't have to pick 5dte if 3dte will work. You don't have to put them on at the same time. Personally, I'd rather leg in @ puts on a dip, then wait for the bounce to get in the calls. But that's more risk - if you're wrong. Anyway, here's a 5dte test.'
Looking at 5dte, 5wide calls vs 20wide puts, you can double the calls if you want to accept a small upside risk.