Can you improve an Iron Condor? Turn it into a "Dragonfly"!
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- čas přidán 16. 09. 2020
- This is one of my favorite trade strategies. It's a hybrid of a butterfly with an Iron Condor. Essentially it's an Iron Condor with added protection.
- Jak na to + styl
I found out about 0 DTE trades about 2 months ago , on another channel..I've been practicing and using my own capital and it has been awsome...but you have a gift of explaining it very very well and make it sound easy...your a true blessing
Keep it up
Hi Scott, just want to show my appreciations to your coaching since beginning of Rich Dad’s Cash Flow. You are the Best! In light and prosperity. Nameste.
Thank you so much Lily for the kind words! That means the world to me.
Another great one Scott! Would be nice if you could have explained more about this strategy on this video. Anyhow, waiting for video how this trade go on Oct 16.
What more do you want to know? Each leg is pretty detailed here in the video and the risk graph shows you all the metrics...profit/loss amounts, Probability of success, profit zones etc.
One other note that I think will help you...don't wait until the trade is over to come back and revisit it! Get this trade loaded up in your virtual trading acct. and watch it! The more proactive and participative you are the faster the learning happens!
Great video Scott, as always. I’m pretty new to trading (less than a year) and did not know or had seen a dragonfly trade. Are they only used when the strike and underlying prices are as close as the BAC IC? When else is a dragonfly beneficial? Thank you for all your input.
Hey Alex! So adding the extra insurance is always something worth looking at when its a lower probability trade. With BAC it's really tough to get 80+% POP so I like to use it in those situations. You give up a little profit potential but you get more stability and higher POP
In this with you guys Scott, love being a lifetime member
Hey Jake! Good to see you here!
HeyJake - what’s the lifetime member?
Jake Stuttgen hey bro. U left AXE? I’m about to.
@@miketmentor3338 Yeah I left, couldn't handle the BS anymore. Care free trading
Can we private message on here?
As for the lifetime member, Scott runs a trade newsletter if you will through paradigm press called "Rich dads weekly cashflow" I've been apart of it and followed since the beginning in Nov. 2018. Couldn't be happier following a guy like Scott through this mess of a market.
@@miketmentor3338 Just emailed you
hey Scott i agree great video but you need to explain, to us beginners, what's the reasoning of that extra insurance. I can see that the dragonfly wings on each side produces more profit if the stock price falls in that area and the center line is less profit.. but that's really all i got from this video. But why do that? don't understand..
You pretty much nailed it! Insurance is insurance! No matter house, car or the stock market. It makes the trade less risky That's always the goal...maximize profit while reducing risk.
What if you used conditional orders to buy the protection you needed just on the side that was getting tested. It would however cost more as the price of the UL would be closer to your short strike but it would reduce the cost of having to purchase both options at the same time.
One guy was experimenting using a reverse iron condor inside an IC as an earnings play. He would sell more IC contracts than the reverse IC, kind of a ratio type of trade.
We are active traders so we make adjustments like that but its done manually.
Hello, Pleas eexplain the choice of 9 contracts and is it OK to do less?
Thank you
The nice thing about trading is that you can scale a trade to whatever position size you desire!
@@TradeWithScott Hi Scott, Thanks for the reply. You mentioned you chose 9 instead of 10 and I wondered about the thinking behind it. And also the jumps in the increment of 9.
@@jdstarman6053 As I mentioned, its just position sizing. there is no relavance to the 9 contract size beyond that.
greetings, do you have a trading channel or website, any info???
Hey Carlos! This is the trading channel! You can also follow me on twitter @ThetaSeller
youre not gonna put any stop losses here?
30 DTE on BAC Iron Condor set up ->>> 9:30 Protection Insurance >>>> 12:00 . Still watch the whole video, but wanted some shortcuts for more advanced Options traders
There are no shortcuts in life lol
@@TradeWithScott true that. Math is hard. Options are harder
You seem to know a thing or two LOL
Thanks Dennis. I try my best.