Comments on: Close - RTH Condor http://www.optionsropeadope.com/2008/08/06/close-rth-condor/ Thoughts, Trades, and Instruction for Profiting from Options the Smart Way Wed, 07 Jan 2009 03:33:25 +0000 http://wordpress.org/?v=2.0.3 by: Peter http://www.optionsropeadope.com/2008/08/06/close-rth-condor/#comment-124 Thu, 07 Aug 2008 06:07:23 +0000 http://www.optionsropeadope.com/2008/08/06/close-rth-condor/#comment-124 I think you are mistaken about one thing - the required capital to be tied up. You will find it is identical (or close enough) - due to put/call parity. Your paid $3.80 to open the condor, therefore tying up $380. You should find that you would have collected about $1.20 to sell the iron condor, therefore tying up $380 of capital (ie, $500 risk less credit received). There is no difference! Therefore, if you feel the OTM options are more liquid, then go the iron condor... Peter. I think you are mistaken about one thing - the required capital to be tied up. You will find it is identical (or close enough) - due to put/call parity. Your paid $3.80 to open the condor, therefore tying up $380. You should find that you would have collected about $1.20 to sell the iron condor, therefore tying up $380 of capital (ie, $500 risk less credit received).

There is no difference! Therefore, if you feel the OTM options are more liquid, then go the iron condor…

Peter.

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