Jared Woodard of Condor Options is out dispensing pearls of wisdom again.
While his first foray into the eBook world zeroed in on the Volatility Risk Premium, this go around he doles out a bunch of goodies on Iron Condors. The essay is tailored toward experienced condor traders and offers insights on everything from identifying the right environment for condors, structuring the spread, entry and exits, and risk management. Following are my top five takeaways from the short essay.
1. The intricacies of using historical volatility to identify strategic entry points.
2. The nature of expectancy and efficient markets. Woodard notes, “Absent some viable edge or perceived advantage, there is no reason to expect that simply executing some type of financial transaction will generate profits.”
3. A surefire way to position size which allows the ability to endure drawdown periods.
4. An enlightening explanation on how adjustments or so-called repairs should be viewed.
5. Backtested returns for a variety of different condor strategies.
All in all it’s a short read which offers some interesting food for thought for the condor enthusiast.
My review of Woodard’s other book Options and the Volatility Risk Premium can be found here.
Iron Condor Spread Strategies can be found on the FT Press site.
