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Chapter 17-3 - Position Sizing

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Chapter 17-3 - Position Sizing Powered By Docstoc
					Money Management Calculations:

      Portfolio Size:

      Maximium Risk Position Sizing:




      Maximum Account Utilization Position Sizing:




      Recommended Position Sizing:




            *
           **



      1)
2)
Money Management Calculations:

      Portfolio Size:

      Maximium Risk Position Sizing:
          Maximum Risk % To Portfolio
          Maximum Risk Amount To Portfolio
          Option Strategy
          Underlying Instrument
          Spread Width
          Minimum Initial Credit per Wing of Iron Condor
          Maximum Loss per Wing of Iron Condor
          Static Risk per Wing of Iron Condor (Net Debit)
          Static Risk Gross Debit Exit per Wing of Iron Condor
          Minimum Initial Credit per Iron Condor (Both Wings Combined)
          Static Risk per Iron Condor (Factoring Credit From Both Wings Combined)
          Position Size (Spreads per Wing of Iron Condor) / Maintenance*


      Maximum Account Utilization Position Sizing:
          Maximum Account Utilization % For Cornerstone Position
          Maximum Account Utilization Amount For Cornerstone Position
          Position Size (Spreads per Wing of Iron Condor) For Cornerstone Position / Maintenance*
          Maximum Account Utilization % For Confirmation Position
          Maximum Account Utilization Amount For Confirmation Position
          Position Size (Spreads per Wing of Iron Condor) For Confirmation Position / Maintenance*
          Maximum Account Utilization % For Cornerstone + Confirmation Positions
          Maximum Account Utilization Amount For Cornerstone + Confirmation Positions
          Position Size (Spreads per Wing of Iron Condor) For Cornerstone + Confirmation Positions / Maintenance*


      Recommended Position Sizing:
          Maximum Position Size (Spreads per Wing of Iron Condor) Per Above / Maintenance*
          Minimum Initial Credit Received For Position (Both Wings Combined)
          Static Risk Amount Of Position
          Absolute Risk Amount Of Position (Factoring Credit From Both Wings Combined)
          Return On Risk If Maximum Profit Achieved**




            Maintenance calculation assumes broker provides margin relief for one wing of the Iron Condor.
            Above calculations exclude commissions/fees.


            Spreadsheet Conventions:
            Cells shaded light green can be updated as appropriate per trader's portfolio size/preferences and Iron
            Condor strategy development rules. Cells shaded gray are calculated fields that ahould not require
            adjustments on a month-to-month basis.
This worksheet has been protected to prevent unwanted corruption of Excel calculations. If you would like to
make adjustments to the above calculations, simply un-protect the worksheet first. No password has been
specified to protect the worksheet; if a password is requested by an Excel dialog box, do not specify a value.
Search for "protect worksheet" in Excel Help for your version of Excel for navigation assistance and details.



This spreadsheet has been developed based on the rules illustrated in Chapter 17 (Static Risk Management)
of the OPTIONS MD Program, and the calculations are believed to be accurate. Caveat emptor (utilize
and/or modify this tool at your own risk). OptionsMD nor the creator of this spreadsheet cannot be held
responsible for any decisions that you make with a live trading account; this tool is for demonstration
purposes only. Any questions regarding the above Excel calculatons can be sent to Marty at the following e-
mail address martybro@yahoo.com.
$     5,200.00


     2.0%
$       104.00
HP Iron Condor
     SPY
$         2.00
$        (0.15)
$         1.85
$         0.45
$         0.60
$        (0.30)
$         0.30
             3 $     555.00



     5.0%
$       260.00
             1   $   185.00
     0.0%
$          -
           -     $      -
     5.0%
$       260.00
             1   $   185.00



              1 $    185.00
$        (30.00)
$         30.00
$       170.00
    17.65%

				
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