Two more scenarios are: market keep going and you lose more than the original condor after roll. Or market reverse you would have made the full amount of the original condor. So carefully initiate condor before hand is much more important than thinking you can always roll to make money.

Stocks extended their year-to-date rally following the CPI report, with the S&P 500 last up 0.8% in afternoon trading. but I don't know if stocks will quickly rebound, continue to pull back or move sideways for a few weeks, or if conditions will rapidly deteriorate.I am under pressure to grow my reserve of $250k.

Great video. It would be nice to see more option adjustment videos presented on a regular basis.

Is there a reason you didn't roll up the PUT wing at the same time? That would have improved the profit in this example.

I would keep the 4215 long calls instead of rolling them to 4225 because the difference of $36 is rather low and it protects 10 additional points in case the market keeps rallying.

Iv only been trading for about 2y now, and its finally all making sense. Cant wait to save up and go train with these guys, love what they do. thanks for the vids SMB!

Great! Thank you! It will be useful if you understand rolling: 1. If the price goes up faster and exceeds both strikes. 2. Analyze rolling the iron butterfly in the money and out of the money🙏💚

This happened to me yesterday except I had a max loss on SPX IC. It’s important to note that you must have enough $ in your account for the original trade plus enough money to cover the cost of defending it in case it goes wrong. I couldn’t defend it because my account was just shy of the amount I needed to roll. It was terrible and I may just have ruined all the progress I made to the point where I’m out.

Seth a few months ago I was looking to learn about covered calls. I was hesitant but in your video you said to make trades were you feel (data) says you can be bullish about the particular stock. Learning this has made a difference in my monthly budget. I had non dividend paying stock that now helps my income. Just wanted to leave you this message so you know you are helping people. Thanks for making covered calls education available to regular people.

Summary: At the open, sell strikes 0.6% OTM or 22 delta on both sides at 0.6% spread width and hope for the best. If one side goes wrong by 2x the delta (44 delta, but was 50 in the example) roll it away, but not out to 3 delta (or by an additional 0.2% in strike distance). Looks like the example trade was filled about 9:35am. But given the larger declining VWAP and rising shorter VWAP on that day, it would have been crazy to put the Call side on in the morning blindly because of the prior day rally and body gap over declining VWAP which would have been a sign it's reaching up for +1 sig.

Thanks Seth. I guess that the example fits a certain scenario which is market rally and close to the upside more than expected. However, the real value of this video, like you said the "take away" is the flexibility of fixing the original trade based on price action. On the other hand, I could have turned around the credit bearish call spread into debit bullish call spread in case the market blow out to the up side. If it happened to be a up side tread day, I could have made rather large profit. Another notable thing is that each of your spread has maximum loss of around 2000 (spread - credit) and you have set the short strike price to only ~30 points away from current price. Which is only around half of ATR. So, the chance of one of the spread being breached (current price cross short price) is pretty high. Off course, further away short strike would have increased the max loss. Just sharing a few of my experiences trading 0DTE credit spreads. Hope it make sense.

Thanks -- very helpful! In this example would the trigger to execute the roll be the moment SPX trades at 4190 or would the guys on your desk take action before price reached the short call price level?

Appreciate the breakdown of the negative cost impact of the roll at the end.

Very well explained. You roll up, but not up and out. Days like last Friday will be very frustrating. There was a big up move. Rolling and rolling, or what do you want to do?

Great video! Very very good!Thanks for it ! ! !

Due to time dacay at 02.00 p.m.: If you close the complete trade with the values given at 7:10 , you make 674 USD. This is about half of the shown result, but no risk.

Very Nice, i hate losing also.

I like this strategy and it seems great if you are able to sit and watch the market all day. Maybe once I get the permission to exercise level 3 trades, I will use one of my days off and try this. I do wish you would have shown the math if you did not roll the condor so people could see the difference.

Do you have strategies to modify trades that are loser to winner for 0DTE put & call credit spread i.e, direction bias trade?

Hello and thank you for this lesson, very informative. I have a question regarding a situation where a market makes a sudden move up/down and you have to make a decision, what would be your suggestion for this scenario? Thx in advance.

So basically, I sell the condor and then buy another one further out. Got it! Thank you

thanks

I got damn sold my LRCX calls for 40$!!! 2 of em cause I needed sleep and I was down 1k for the week so I sold. I woke to see 1600 a piece!!! Yes I've done this and many do many times but the return on income and percent gains here were insane for a day and I am sick. I not only did that but i got puts on LRCX which are smoked despite being exp next Friday I think. Not my day. Tired of hedging cause I lost all my account and can't go margin. It sucks may as well take the next 5 to 10yrs off

Question is at what point you decide to roll the tested side. in your case SCV. Do you wait till it gets to say some point close to short call leg or some % of you intial credit lost? Other question i assume this when you are certain by some probability rule that your short leg is in danger to be breached then why sell the long call leg? Why not roll only the losing short leg? Thanks for showing the good winning probability 0DTE

Why if market keep rallying? Do you keep rolling? Also, exactly at which point do you buy back & initiate condor roll?

If you were to try this strategy on Friday you would have went broke because the rally was so big

If I sold a QQQ 0dte option and it expires out of the money, if after hours due to earnings announcements the QQQ moved into the money can the option get exercised after hours?

This makes sense of course, but i dont understand why so many other youtubers suggest rolling up the other side, as if it makes a difference when the price in the money

What brokerage is good for iron condors? Platform’s like Robinhood will close these options around 3:30 pm actively giving less than anticipated credits from such trades

Can anyone tell me what’s better , we not taking about cost of this , just trade itself: spx: 1 lot 15, 20 spread or 3, 4 lots with 5 spread, for credit spreads

I tried to execute this trade on 3 separate occasions and each time the net debt was higher than the initial credit. Tried it when the short went in the money and before it went in the money. Volatility hasn't changed that much from when this video was posted so no clue how they pulled it off, if even they did. The only way I can see to defend this trade is to roll the untested short, but that increases risk. Tell me where I'm wrong

How to roll the calls in an iron condor. Lesson learned.

There is HUGE dependency on WHEN you actually roll the call condor - in this example you sold the 4190 for $4.05 and bought at $5 - this can only happen if you have swiftly realized that the trade is going against you -

I would have rolled up the put spread first.

Am I missing something, or as per the example trade, would you need a 6 out 7 win rate to break even on this strategy?

Why not do a next day roll? But same day roll. Rarely you can roll out same day and still collect credit.

iron condor is great when you have a lots of capital. what is not ok is insane price for your (simple fix)

While I find this video to be somewhat informative about Iron Condors, at the end it’s click bait. Firstly, the presenter doesn’t tell us what was the premise behind the specific strike selections and their distance from the market when they were initiated. Does implied or realized vol play an important role in their selection? Secondly, he doesn’t go into further detail of when to roll up the IC. Do we roll after a set % loss? Unfortunately, that important piece of info was left out. Thirdly, size of account is important. Traders with an account size of less than 25k who find themselves constantly adjusting SPX trades will be flagged as pattern day traders, limiting them to only 3 day trades in 5 business days. Therefore, IC trades are better implemented with ES futures options than SPX options for smaller accounts despite the fact that ES futures options exposes the trader to assignment risk. Solution: Manage the trade by closing it before the end of that day. Lastly, the video title was misleading. It said how to turn a losing 0DTE option into a winner, but doesn’t discuss straight call and put purchases that went array leaving me feeling quite disappointed.

Always works great until it doesn't. If the market goes up hard eventually theta will eat you up. If the market goes up to 4225 you will lose $6-$8K, OR you can roll to the next day, but you must have enough margin to roll. If the market is trending as it did last week you would eventually get smoked big time. Would be nice to discuss those situations, but as we know there really isn't anything to discuss because you will eventually get absolutely smoked. Can we discuss what to do in those scenarios? Or do we just get smoked?

Problem with this strategy is if the market keeps rallying, you will end up losing more money.

Well when markets have been rallying far more then 35 pts I. The day due to increase in volatility and sometimes rallies 70pts, why not if one side goes against you on the iron condor buy back the short call or puts and invert above the long side therefore making a debit spread incase the market keeps rallying. Will allow you to keep more of the credit received from rolling up/down the short legs and still might make a profit in case it pulls back eod action above the long legs but below/above the short legs.

Seems like calculus to me.

Do you still remember the stock Kodak? What is your opinion on the trend of Kodak stock in the past three years?

Slap the bid 📉