Is it possible to have a short delta of .16 and still also get 1/3 of the strike price in premium?
It feels to me that in order to achieve 33% of the strike width in premium I have to chose a delta closer to .3.
I guess ultimately what I'm asking is for advice on what works for you using iron condors.
So far, I've only made money on one iron condor with APPL and one with SPY. QQQ, MSFT, and NVDA are the others that ive tried.
My target profit is 50% so it's not like I'm trying to squeeze every penny out of the trade
Iron condor strikes and deltas help
byu/nollie_heelflip inoptions
Posted by nollie_heelflip
2 Comments
.16 delta should give you .30, but not .30 on each side. Thats the total credit. Benefit of IC is you can go further out on each side and bank on an inside move, downside is risk in either direction.
Im in an IWM IC that paid .36 per $1 width. Ill probably bank some more credit cause the low wing is worth pennies now and can be rolled up. This was about 20 delta. Coulda collected more if it was wider but i didnt have the BP.
I get a lot of my inspiration for iron condors from Tasty Live and every once in a while I can find a stock with high IV and 45+ days out at maybe .2 delta, but usually end up closer to 1/4th the width.
It’s not a strategy I run, but the reason people like strangles so much is that you can get paid around the .16 delta.