{"id":18,"date":"2014-12-11T07:53:12","date_gmt":"2014-12-11T07:53:12","guid":{"rendered":"http:\/\/www.travelsandtrades.com\/?p=18"},"modified":"2014-12-11T07:55:11","modified_gmt":"2014-12-11T07:55:11","slug":"modified-iron-condor-guide","status":"publish","type":"post","link":"http:\/\/www.travelsandtrades.com\/?p=18","title":{"rendered":"Modified Iron Condor * Guide *"},"content":{"rendered":"

Modified Iron condor (MIC)<\/strong><\/p>\n

The MIC is a non-directional strategy where you sell both ends of the spectrum and buy insurance in the middle. Essentially, you’re a market insurance salesmen. The upside is usually the biggest problem with the MIC and the anchor likes up, so they tend to hedge each other. The EV trading loves volatitlity increases and helps on the down as does the standard adjustments you’d do in the MIC. Down and up are generally covered.<\/p>\n

This is how you’d setup an MIC<\/p>\n

\n
\n
Setup:The shorts start at approximately delta 8-10 and are 20 wide. The call side<\/p>\n

is uneven and typically one unit represents 5 on the call side and 15 on<\/p>\n

the put side. To balance vega\/delta further I add a close to ATM put<\/p>\n

debit spread and 2 black swan puts. The call spreads are smaller because of volatility<\/p>\n

skew and it makes it easier to manage on the upside.<\/p>\n

Adjustments are made at 20-25 delta. \u00a0Essentially you sold insurance on both sides for a significant amount and through the month you manage your delta (risk).<\/p>\n

On the upside an adjustment would remove a portion of the call spreads<\/p>\n

on the downside an adjustment would be to widen the debit spread, buy<\/p>\n

more debit spreads OR buy a long put in a fast declining market<\/p>\n

Example:<\/p>\n

Sell to open 15 January 17 2014 1025 put<\/p>\n

Buy to open 15 January 17 2014 1005 put<\/p>\n

Price: $.90 credit<\/p>\n

Sell to open 5 January 17 2014 1200 call<\/p>\n

Buy to open 5 January 17 2014 1220 call<\/p>\n

Price: $1.15 credit<\/p>\n<\/div>\n

<\/div>\n
Buy to open 1 January 17 2014 1125 putSell to open 1 Jaunary 17 2014 1105 put<\/p>\n

Price: $6.65 debit<\/p>\n

Buy to open 2 January 17 2014 920 put<\/p>\n

Price: $.90 debit<\/p>\n

RUT at 1128. \u00a0This represents 1 unit.<\/p>\n<\/div>\n

<\/div>\n
<\/div>\n<\/div>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Modified Iron condor (MIC) The MIC is a non-directional strategy where you sell both ends of the spectrum and buy insurance in the middle. Essentially, you’re a market insurance salesmen. The upside is usually the biggest problem with the MIC and the anchor likes up, so they tend to hedge each other. The EV trading … Continue reading Modified Iron Condor * Guide *<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-18","post","type-post","status-publish","format-standard","hentry","category-trades"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p5IMbd-i","jetpack-related-posts":[],"_links":{"self":[{"href":"http:\/\/www.travelsandtrades.com\/index.php?rest_route=\/wp\/v2\/posts\/18","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.travelsandtrades.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.travelsandtrades.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.travelsandtrades.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.travelsandtrades.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18"}],"version-history":[{"count":2,"href":"http:\/\/www.travelsandtrades.com\/index.php?rest_route=\/wp\/v2\/posts\/18\/revisions"}],"predecessor-version":[{"id":20,"href":"http:\/\/www.travelsandtrades.com\/index.php?rest_route=\/wp\/v2\/posts\/18\/revisions\/20"}],"wp:attachment":[{"href":"http:\/\/www.travelsandtrades.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.travelsandtrades.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.travelsandtrades.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}