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Selling Strangles and Iron Condors in a Volatile Market
Overview:
This presentation will start out by showing the benefit of selling out-of-the money calls. We will then show how coupling that strategy with the sale of out-of-the money puts can increase our chances for profitability.
We will follow that by showing the risk involved in selling strangles. We will show how covering the strangle by purchasing further out-of-the-money calls and puts can define our risk. That is called the iron condor.
Dan Keegan and Bill Gruzynski will make the presentation along with Joe Duffy from PFGBEST.
Covered topics will include:
- Selling Strangles
- Covering the risk in Strangles
- Selling Iron Condors
- Making Adjustments in Iron Condors
Speaker bio:
Dan Keegan started out in the options business in 1978 and worked his way up in the Chicago tradition. Dan spent five years as a runner, phone clerk, and floor broker for A.G. Becker on the floor of the Chicago Board Options Exchange (CBOE). In 1984 Dan, with backing from legendary trader and adventurer Steve Fossett, began a more than twenty year carreer as an independent market maker on the floor of the CBOE.
Dan has also traded at the Chicago Board of Trade in Treasury Bond Futures and options on soybean oil futures
For The Chicago School of Trading, Dan was in charge of writing the options course, including the text and video version. He also oversees all options mentors and student development.
Bill Gruzynski began his futures industry career at the Chicago Board of Trade as a runner and then a grain analyst. He later moved to Rosenthal Collins LLC and ran the firm's Chicago Mercantile Exchange operation until 1980, when he became an independent trader and broker.
In the early 1980's, Bill began a decades long professional relationship with legendary Chicago trader Richard Dennis. Mr. Dennis is most well known for his famous "Turtles" experiment where he trained a small group of people with no previous market experience and turned a majority of them into successful traders. By training his turtles in his trading techniques, Richard Dennis proved that trading can be learned and is not restricted to a select group of 'born traders'. Bill executed orders for Dennis and his group on the CME and later learned the same Trend Following system that Richard Dennis taught his turtles.
Bill has served on numerous Exchange committees, including: arbitration, business conduct, floor practices, IOM new products, commodity trade reconstruction, pit oversight, as well as various pit committees, including Vice-Chairman of the S&P 500 pit committee and IOM Divisional Vice-Chairman. Bill also served as a director of the Commodity Futures Political Fund.
Past performance is not indicative of future results. Trading futures and options is not suitable for everyone. There is a substantial risk of loss in trading futures and options.