Curious what you all think about this strategy, especially on strong stocks that may recover from a temporary dip?
Would there be a better strategy, risk-defined or not?
Anyone use reverse iron condors for an option play?
byu/cil0n inoptions
Posted by cil0n
5 Comments
If its strong just be bullish. Not just betting on a move either way and capping upside.
When you say “Reverse Iron Condor” do you just mean buying one instead of selling?
I have thought about it as a way to play IV expansion ahead of an announcement, but then you’re fighting Theta so it’s not clear that it’s a profitable play.
Yes
I have used them before on earnings and other times of low to high volatility. They can work, but you will be doing pretty well if you can capture an 8-10% return on one. When one doesn’t work out you lose a lot more.
Yes, but daily reminder there is no edge in a structure. Newbies often look for edge in exotic structures. Let me save you the trouble there is none.
Start with your view then find the most efficient structure to express it.