Weekly Iron Condor

For Canadian options ($1 wide spreads), you need about $100 per condor max risk minus credit. With proper sizing (2% risk), a $5,000 account could trade 1-2 condors. For US options ($5 wide), you need more capital. $10,000+ is recommended for meaningful diversification.

If you hold to expiration and one short option is ITM, you may be assigned stock (put) or have to deliver stock (call). The long wing limits your loss to the spread width. However, best practice is to close before expiration to avoid assignment complications.

No, that's the beauty of iron condors. Your maximum loss is defined: spread width minus credit received. Even if the stock gaps dramatically, your long wings protect you. This is why condors are TFSA/RRSP eligible.

Weekly condors offer faster theta decay and 52 opportunities per year vs 12 for monthly. However, they require more active management and have higher gamma risk. Weekly suits traders who can monitor daily and want more frequent income.

Using 16-delta short strikes, typical win rates are 65-75%. However, winning trades are usually smaller than losing trades, so you need this high win rate to be profitable. Risk management is crucial.

No, strikes should be selected based on current price and delta levels. A stock at $32 this week might need $31/$33 strikes, but if it moves to $34 next week, you'd use $33/$35. Always recalculate based on current conditions.

If premium is insufficient, you have options: (1) Skip that week - not every week is tradeable, (2) Tighten strikes (higher delta) - accept lower win rate for more credit, (3) Choose different underlying with better premium, (4) Wait for IV to rise.

If stock is oscillating wildly and threatening both sides, the safest action is to close the entire position. Don't try to 'trade around' a choppy market. Take the loss, preserve capital, and try again next week with cleaner conditions.

Not necessarily. Size should be based on risk, not contract count. A condor with $73 max loss might warrant 10 contracts, while one with $200 max loss might warrant 4 contracts to achieve similar dollar risk.

Closing winners at 50% profit is generally recommended. While you leave some profit on the table, you avoid the risk of a late-week reversal and free your capital for next week. The math favors taking profits and redeploying.

You need significant sample size (50+ trades minimum) and should track: profit factor (target >1.2), Sharpe ratio, and consistency across different market conditions. Compare to risk-free rate. If edge isn't clear after 50 trades, it probably doesn't exist.

Sum the Greeks across all positions to get portfolio delta, gamma, theta, and vega. Target: delta near zero, gamma limited, theta positive. If portfolio delta drifts significantly, consider adding a biased condor to rebalance.

Balance between diversification and complexity. 3-5 underlyings is typically optimal. Enough to spread risk but few enough to know each stock well. Too many and you can't manage effectively; too few and you're concentrated.

Options: (1) Skip trading until VIX normalizes, (2) Use wider strikes (lower delta), (3) Reduce position size, (4) Tighter management (lower profit targets, quicker stops). High VIX means bigger moves and more stop-outs.

For retail traders, generally no. Gamma scalping requires constant hedging, tight execution, and the edge is small. Professional market makers do it, but for retail weekly condor traders, simpler management (close early, cut losses) is more practical.