Sunday, September 15, 2013

Don't let probabilities give you a false sense of security

That's why I always hedge and will hedge my Oct-13 925/935/1100/1110 long iron condor on Russell with Nov-13 107 calls if Russell crosses 1065 and Nov-13 puts if Russell drops below 990. I am prepared to hedge although probabilities indicate that Russell will expire Inside the Red Lines.

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