ironcondors cboe

@ Copyright 2013. All rights reserved.

Sheridan Options Mentoring, Inc.www.SheridanMentoring.com

May 14, 2013

Dan Sheridan

Iron Condors and Adjustments


Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation at www.theocc.com. Any strategies discussed, including examples using actual securities and price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement, recommendation or solicitation to buy or sell securities. In order to simplify the computations, commissions, fees, margin interest and taxes have not been included in the examples used in this presentation. Such costs will impact the outcome of the stock and options transactions and should be considered. Multiple leg strategies involve multiple commission charges. Parameters relating to past performance of strategies discussed are not capable of being duplicated. Investors should consult their tax advisor as to how taxes affect the outcome of contemplated options transactions. Brokerage firms may require customers to post higher margins than the margins specified in this presentation. Supporting documentation for any claims, statistics, or other technical data in this presentation is available from Sheridan Options Mentoring at www.sheridanoptionsmentoring.com. Chicago Board Options Exchange, Incorporated (CBOE) is not affiliated with Sheridan Options Mentoring or OptionNet. This presentation should not be construed as an endorsement or an indication by CBOE of the value of any non-CBOE product or service described in this presentation.

Disclaimer


Weeklys(SM) Iron Condor


Weeklys(SM) Iron Condor Guidelines SPX

� This is a “No Touch” Methodology� Profit Goal 7-8%, Maximum loss is your credit� Look to stay in trade about 3 days� Probability of hitting short in 3 days not that big� If this was an adjusting methodology, could

take some credit spreads off or use debit spreads like Jim Biitman talked about last week.


Weeklys(SM) Iron Condor Guidelines

� $700-$800 minimum credit� Latest day to close, following Thursday� Sell 10 delta for short option. If no 10 delta option,

and choice between 7 and 12 delta, pick 7 delta. If choice between 7 or 11 delta, pick 7.

� Have order in at all times.� Bad day April 15, big move in RUT( Down 35

points 3.76% 5.42 SD)


Low Probability Iron Condor


Low Probability Iron Condor RUT

� Profit Plan 10% Maximum Loss 15%� Days to expiration: 30-50 days from expiration� Short strike: 14-16 delta� Long strike : 10 points from short� 1st Adjustment: When short delta increases by 10 or hits 25,

buy option next month out to cut position deltas in half.� 2nd Adjustment: When short delta increases 10 more to 35,

reposition entire Iron Condor to beginning 14-16 delta for your short strikes. Sell out long option you bought at 25 delta for a profit. ( Unless market really moving fast)

� Never hold into expiration week.


Upcoming SeminarsBe a Successful Retail Options Trader!

• June 6, 2013 – Boston, MA – Create an Options Portfolio from Scratch!

Dan Sheridan, Marty Kearney and their fellow traders will be using LIVE trades to demonstrate how they build an options portfolio from scratch, what trades to put on, and how to execute them.

• July 11, 2013 – Huntington Beach, CA–Iron Condors Love Fest!

Go to www.cboe.com/seminarsto register!


Dan Sheridan

+1-800-288-9341

[email protected]

Sheridan Options Mentoring, Inc.http://www.SheridanMentoring.com/

ironcondors cboe

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