Reading the Red Day
In the clip my EEM condor prints minus 700 dollars while implied volatility falls, so there is no reason for that red. It is 10 percent of the maximum we can make, gone in one day. I had thought about getting out; the swing flips my mind, and I probably stay in.
Small Windows, Day 16
We put these on short, 35 to 45 days out, and in the call we are 23 days from maturity, so the windows are small: one bad day puts the P/L down there. The usual exit is day 18 to 21; these shorter ones I want to ride to day 16 while still avoiding a loss.
Risk 2, Return 1
We set them up defensive, risk two and return one, so the profit over the money at risk is smaller. With a one-to-one condor I would normally be fifty percent up. Slow is the price, and it is a little annoying.
Size and Steady Growth
If I put them on this defensive, I would move the size from five percent to six or seven. We are in no rush; as long as the portfolio climbs steadily, we are fine. Big wins bring big losses, and how much of that ride you want is a matter of personality.
Every Wednesday we run a session like this on a real portfolio. One free lesson a week lands here; the full calls and the archive are part of the Elite Trader Plan.
🚨 Educational content only. Not financial advice. Past performance ≠ future results.