Q: I purchased your course and I’m enjoying it….I’m up to Module 5 right now.
Question for you: How do you choose between selling Iron Condors (credit) and buying Double Diagonal Calendars (debit)? Is there any criteria for favoring one over the other when building your portfolio every month? Or, do you simply try to mix it up?
A: I choose between Iron Condors and Double Calendars by using volatility as a guide.
When volatility is high and coming down I want to add Iron Condors with a slightly positive delta because it means the market is probably rising as volatility drops.
When volatility is low and rising I want to add put Double Calendars to my portfolio because I make money on the ‘vol spread’ between the front month and the back month. Said another way, if volatility is rising I only want to purchase put Double Calendars because the market is probably trending lower.