Dan Sheridan

Iron Condors and Adjustments

May 14, 2013
Sheridan Options Mentoring, Inc.
www.SheridanMentoring.com

@ Copyright 2013. All rights reserved.

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Disclaimer
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.
@ Copyright 2013. All rights reserved.

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Weeklys(SM) Iron Condor

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Weeklys(SM) Iron Condor

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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.

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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)

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Low Probability Iron Condor

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Low Probability Iron Condor

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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.

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Upcoming Seminars
Be 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/seminars to register!

@ Copyright 2013. All rights reserved.

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Dan Sheridan
+1-800-288-9341
info@SheridanMentoring.com

Sheridan Options Mentoring, Inc.

http://www.SheridanMentoring.com/

@ Copyright 2013. All rights reserved.

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