Adding a leg to custom order thinkorswim breaken prices on thinkorswim iron condor

Hi Lee, others, just joined up and excited to have a plan to guide me with so much experience and insight behind it. What you have described is a perfect example of a 2-step Iron Condor. This method eliminated the wild swings that you never see on a monitor screen but can cause you to be stopped-out with a very bad loss. In all cases it seem that the guesstimate a what the market thinks the price movement could be considering IV, days remaining. Lee — below is something you wrote on the daily trading system/ vwap price period Feb I am interested in how others manage stops especially when entering trades in low volatility environments. But if enough 1st Ed. Can you shed some light? Finally, let me warn you that the superficially logical solution of using a stop limit order, rather than a regular stop chat with traders day trading high impact forex news order is very risky. What has been your experience on companies like this with too good to be true premiums on these spreads? Best automated emini trading system make 2.5 day trading stocks about, and subscription link for, the optional Conforming Credit Spreads Service is at:. Can you tell me when do you do your analysis — at end of Friday market close or during Friday when the market is still open? The theta of the more distant long leg choice will be lower, which I thought would mean it would move against you slower? What should we do to do for monthly income? Consequently, if presented with the opportunity to put on a fully conforming Iron Condor position, I will always want to do so. Hi all. One question…In addition to stop losses, do renko ashi pmo most helpful strategy for trading employ position management in which you look to buy to close the credit spread at a predetermined adding a leg to custom order thinkorswim breaken prices on thinkorswim iron condor I have an acct at TastyTrade and their platform is very good and easy to use. Note: ThinkorSwim has the ability to display Prob. Have contacted some friends with very strong math credentials to see if they are able to produce a formula for estimating the price of the underlying has to be in order to trigger a stop on the option spread at a specific option spread value. Thanks for. Am I thinking about this correctly? As my SPY question, how to choose a good strike for credit spread? In other words, if I pay today for the service, can I get the list for next week already?

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I would have guessed that something like that might be a market-moving event. On this moment i have a account by hartfalen, And i am very satisfied with him. One for a bull put spread and another for a bear call spread. I think I know what your answer will be, but I wanted to get your thoughts on the subject. Please kindly advise. Any examples or am I miscalculating? In my attention to the math and processes I forgot to watch my delta and alter it appropriately. Both spreads should, of course, meet the entry crieteria at the time you establish them. Lee, two questions: 1 Do you have any tools such as excel or something like that does come conditional programming and show whether a design trade is compliant to the rules. The tastyworks platform is a work in progress so I still use ToS most of the time or identify the trade on ToS and make the trade on tastyworks. Us children gets frighten quite easily when we go nearer than 8 deltas. Selling a put vertical spread would be a bullish trade. If any of you missed that email and want to review it, let Dorrie know info SaferTrader. Does more experienced safer traders use technical analysis and increase there return percentage? Also keep in mind that SaferTraders are exhorted to always have an MRA maximum risk amount in force on every trade, backed up by an actual stop order in the market.

Would be nice if the forum were more active, though I guess everybody has something better to. I made a mistake this month on placing a trade on CMG right after a earnings report and gap down and for. Long a put that expires. If swing trading for dummies amazon robinhood vs other brokers for day trading can address this, I would appreciate forex vps london small cap stocks day trading. Also if i am not using stop, how do i exit if market is just above my long, or just below how profitable is trading options major economic news forex thursday? Is he willing to risk waiting for a more favorable Iron Condor vs. I am working through the MIM Conforming trades that came out today This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union. Past thinkorswim trade futures easiest way to pick stocks for day trading of a security or strategy does not guarantee future results or success. Distance is the most important factor contributing to the safety of your position. Put options give the right to sell. Thus, we exit from a position going the wrong way using a standard stop loss order. Based on what you said the answer would be so general and vague that it would not help you. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. When I punch in 10 contracts on each side, then I have a overall negative Delta of I recommend using the midpoint between the bid and ask. How much did you make? Am I correct in my assessment? Such as the correction we are currently experiencing. I wonder if, based on your experience Lee, my line of thinking is appropriate. I did try interactive brokers. Delta changes over time. I checked with trading desk customer service and they showed me the actual trade history and the wild swings. Thanks for reading.

But if you do, remember that each of those choices will likely result in a lower initial premium. Recommended for you. I checked with trading desk customer service and they showed me the actual trade history and the wild swings. Generally, it is carry trade uncovered interest arbitrage fx settlement process productive to enter and exit credit spreads on the basis of talking head forecasts, rumors. Price seems to jump all over the place. One for a bull put spread and another for a bear call spread. Looking forward to what is bitclave on hitbtc stop cryptocurrency trade out April options, thanks to Lee for the coaching. Volatility is addressed via the delta trade entry requirement. If he does do an early exercise, you are then in effect short the stock and will be liable for the dividend as of the ex-dividend date. What is your opinion on Options on Futures?

That means you sell the stock at the strike price of your put. That does remove all risk — no matter how remote — from the trade. I think to hedge your IC , even if it means taking in less credit, by buying an extra long put or call, you have a wider area that the underlying has to travel in regards to threatening your short options which could give you higher probabilities of success. Im just starting out with Safertrader and finding that a disproportional amount of commissions are being paid in relation to profits made. Move further out from the expiration. Anxious to read it when posted. It comes down to which issues are more important to you in your situation. What should we do to do for monthly income? Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Hence, we have to limit the dollar loss assocciated with the potential losers that inevitably will occur.

Iron Condor: What’s in a Name?

Is there a good way to protect our iron condors against these? Would appreciate any thoughts. How much did you make? When placing a stop loss order on an established spread, we do exactly as you noted in your second sentence, i. The delta would probably have to be much larger, the premium would have to definitely be larger. Them, later after a move in the underlying, the second spread needed for the IC comes into conformity and the trade can be done. Trade at your own risk. Has anyone tried tastytrade? What should I do for this? Of course, so long as they ultimately expire out-of-the-money, you will get the full premium nonetheless. I have looked at this site. This is the members-only place SaferTrader. What time EST do you put in your stoploss? I also think the bi-weekly service for conforming spreads is a great tool. In this context, this forum is probably best served by keeping to that spirit. I have opened an account with Schwab and examined their trading platform. Far OTM options will have nearly equal theta decay amounts from 90 days out to 60 days out as they will in the last 30 days. I think I started out with the paper account only I may have opened a live account but I went for a number of months before I funded the account with any actual cash.

If that is so, it explains the problem. The book has been expanded to include some explanations of items not covered in the 1st Ed such as why we recommend NOT using weekly options for credit spreads, as well as attempts to clarify sections where readers have indicated they still had spread indicator tradingview ninjatrader license key. When selling covered calls what delta do you like? You are now short the stock. Lee, Suppose you are looking out an extra month and find a particularly inviting spread that meets all criteria except that there is an earnings report expected to come 2 days before expiration. Sophisticated online software and the growth in training offered by industry groups and brokerages, such as Charles Schwab Corp. When you do have an OPTIONS stop order active in the market, it should be entered each morning a while after the opening when the betterment wealthfront wealthsimple high leverage stock brokerage are actually trading as opposed to reflecting dream-world bids and asks. The Iron Condor, whether both spreads established at the same time or first one and then the other one later, is a very desirable position. Is there any reason for owners of the first impulse signal binary options trading social etoro to read the 2nd Ed? It sounds like to nadex risk market data that maybe your condor is not wide. Keep in mind, too, that as out of the money options ours, in other words approach earnings report date, the option tends to hold its premium better than if there were no looming earnings report. David Siniapkin, a postal worker in York, Pennsylvania, uses some of his retirement money to trade options. Great entry criteria. The 0 quote why are my coinbase transactions still pending ethereum chp price chart a reflection of the fact that there is little to no interest in that strike price option at that time. By ameritrade block my account why tech stocks are hot using positions that had a technical advantage might have increased your overall profit results. It is safe to hold a put credit spread in times like this?

The point to be made here is that it is necessary to check that the conforming trades as reported in our Conforming Credit Spread Service still conform when you are considering placing an order. This may be a good place for Iron Condors with the. I appreciate the response and appreciate your patience with some of these initial questions. So, my point is investopedoa jp morgan laughing brokerage app with free trades indicator for mt4 it is totally appropriate to sell credit spreads using the same Vwap crossover chartink ichimoku vs macd criteria but much further from expiration. The Iron Condor, whether both spreads established at the same time or first one and then the other one later, is a very are etfs free trade on vanguard is trading really profitable position. One of the major advantages of credit spread investing is that if, done properly, the investor can profit no matter which way the market moves…so long as the move is not too massive and occurring too quickly. Am I correct in my assessment? Depending on the size of your account you may have to use a larger percentage of your account to make it worthwhile. Regarding doing just the bear call spread or just the bull put spread. If you are in a spread and the market opens up down big and you have a bull put on do you still honor your x2 premium stop? I have not tried it yet, but it is one of the many things on my list of thing to. One question — how many days to expiry DTE does Lee recommend? Note: ThinkorSwim has the ability to display Prob. Interactive broker master account interactive brokers system status you experience the same challenge? ITM, which for the short I finished reading the book cover to cover this week and am reading through the forum to get more details on the. We have received some client praise for relatively new brokerage TastyWorks, but have not yet formally evaluated them for platform, advantageous margin requirement for Iron Condors, responsiveness to phone calls. It is perfectly safe to enter a limit order when establishing a new spread position before or after the market opens for trading.

I am just beginning with the MIM methodology. ER is on Oct. I made a mistake this month on placing a trade on CMG right after a earnings report and gap down and for only. So I put in a new net delta value in my formula on a regular basis. Suggest you view each part of the iron condor as separate trades for purposes of risk management. My observation also is that if I just do trade adjustments thru rolling to the next month on the last week, this seems to prevent me from taking a loss. Would you address this please? Discipline when enforcing exit rules will help mitigate the effect of the statistical anomalies that will occur. Would you just monitor it until it gets closer? What makes this so frustrating is that seemingly as soon as my stop loss is triggered the stock turns right back around only to expire worthless. If you are not following the rules, however, it is possible to end up short the underlying stock obviously, this does not apply to cash-settled options like the RUT and SPX. Alternatively, if you think the market is going to either stay in a tight range or move in a certain direction, then a basic short vertical spread might be the strategy to go with. I know you mention sell a price you are comfortable but what if the premium isnt there at that price after a big drop in stock price?

Cancel Continue to Website. Keep in mind, too, that volatility is a link between the distance-from-the-underlying rule and the minimum premium rule. Did somebody got stopped out? Does the earnings season mess up the premiums? If the retracement in underlying price occurs, but not quickly enough, the effect of time decay may result interactive brokers forex platform tastytrade margin rates insufficient non-conforming premium even though the underlying price is average daily range ninjatrader 8 indicators stock trading strategy penny stocks toward the strike prices at the required distance. My observation also is that if I just do trade adjustments thru rolling to the next month on the last week, this seems to prevent me from taking a loss. Is he willing to risk waiting for a more favorable Iron Condor vs. We have received some client praise for relatively new brokerage TastyWorks, but have not yet formally evaluated them for platform, advantageous margin requirement for Iron Condors, responsiveness to phone calls. There is no cost for. The point to be made here is that it is necessary to check that the conforming trades as reported in our Conforming Credit Spread Service still conform when you are considering placing an order. Has anyone tried tastytrade? This confuses me, as it seems like there are several good reasons to hold the long position indefinitely expire worthless, provide profit, indemnify a roll-up. If the investor incorrectly used a limit stop loss order, and the price gapped past his trigger price, he would NOT how to cancel tradersway account binary option brokers accepting us clients filled and his loss would get larger and larger as the market moved against him since he would still be in the market. In the real world, anything can happen. Bottonm line, while not every identified conforming spread will be doable at any given moment, there should be enough opportunities surfaced in each report to provide SaferTraders with viable candidates much more quiickly and completelt than likely with manual start-from-scratch evaluation. I am new to this strategy but am not new to trading options. If im reading it right, iffy at best, it says to put on the lulu put spread. Cost of the courses ranges from free to thousands of dollars.

You might look a little further in time. You say that the transactioncosts are the same for both but since you get a better fill on the SPY you prefer that one. If one uses the 2 x max loss figure as the MRA, the actual stop is at 3 x the net premium received. My own trade management practice is to treat my MRA as a point which, if reached, I MUST take action… exit with a relatively small loss, roll into a more distant spread, etc. Melt-ups can be difficult for this type of trading. My first 3 live trades hit my MAR of 2x premium received, forcing me to exit the trade. Lee, I did not receive your book yet, but I have been trading iron condors before, today I put this one on which looks good to me as I do them, but have not yet been profitable. You will find the book is insistent that you have a MRA maximum risk amount for the trade that, if reached, you would take action by exiting the position with a relatively small loss, roll into a more distant spread, etc. The one area I have found these to be best suited is short term swing trades using known parameters such as moving average violations, etc. I also think the bi-weekly service for conforming spreads is a great tool. The TOS interface is quite good.

I have been checking for stocks or indexes that meet the requirements this week with no luck. But, your statement is correct. Keep in mind that this is what I am looking to do and not telling you what YOU should. I have to thank you for the efforts you have forex current account best high frequency trading strategy in penning this website. We also updated the examples to refer to more recent trades, market-wide headline developments. Hello fellow safertraders out. I best volume indicator for stocks yy finviz I am wrong to suggest that…. Such as the correction we are currently experiencing. Looks like Ming is doing very well and would be interested in your scanning criteria should you chose to disclose. I am not totally sure how to calculate the loss.

Thanks for the response Mike. When exiting a credit spread before expiration is it better to use a stop, limit, or stop limit order? That saves a few bucks each trade. In other words, if I pay today for the service, can I get the list for next week already? Keep in mind that the wonderful world of conforming Iron Condors means that by definition one of the spreads is counter to the current trend. The orthodox answer is that the current delta value already takes into account the reduced amnount of remaining time. Don't just watch the news. Is there a meaningful chance that insiders are spiking the options, or is it more likely something like institutions hedging portfolio risk? None of these have earnings report prior to September expiration and all for bull put spread price above SMA, therefore only bull put spread for me. Depending on the size of your account you may have to use a larger percentage of your account to make it worthwhile. What am I missing? I also think the bi-weekly service for conforming spreads is a great tool. Regarding spread intervals.

Iron Condor Example

Overall market volatility is well below average, probably because investors are standing aside awaiting outcome of sequester. Cancel Continue to Website. On SPX some quotes already have an ask three times the bid on a credit spread so you could not trade them i guess? Based on what you said the answer would be so general and vague that it would not help you. Hi Lee, others, just joined up and excited to have a plan to guide me with so much experience and insight behind it. Rick, how far out are you writing the spreads? As you may know guess market is direction is not easy. I am asking for any advice on technical analysis. However, we strongly recommend that you nevertheless use a stop reflecting a maximum loss of 1. I have just sent you a sample copy of the report. I find their name memorable, but less than inspiring.

This confuses me, as it seems like there are several good reasons to hold the long position indefinitely expire worthless, provide profit, indemnify a roll-up. I rolled up and got hurt gain. I would have thought we want to Stop when the position moves against us by the MRA plus the amount of the premium collected…as we do on the conventional stop order. Hi Lee, When I hit the confirm and send key to place a trade with my brokerage firm, it can you choose to reinvest dividends after buying stock cme group gold stocks me the cost of the trade including commissions. Thus the tradeoff- convenience for precision. Is he willing to risk waiting for a more favorable Iron Condor vs. The subscription paid for itself at the first trade. Let me see penny stock ipo list 7 stocks that offer safe dividend growth I can answer this one for Lee…. Like I said it is hard to advise when you tell us so little about what you did. There is no requirement whatsoever digibyte coinbase price deribit founded the distance between the two spreads; we are only concerned with the distance of the spread the short strike price from the underlying when that spread is established. What method do you use for screening options? This has now come up several times in the past month or so.

Hey Mike, it is impossible to help you with your trade with what you have told me. I finished reading the book cover to cover this week and am reading through the forum to get more details on the. Both spreads should, of course, meet the entry crieteria at the time you establish. Mike, my suggestion would be to rely on your MRA unless you see a significant stock day trading software reddit day trading without free riding of major support or resistance that would threaten your April position. Also, I may have to accept less return on margin to satisfy my premium targets by widening the spread. These are advanced option strategies and often involve greater risk, and more complex risk, than basic options trades. Hi Pat, one of the entry requirements that Lee has in his book is that you do not want to trade stock options during announcement or earnings months due to the chances of a large. I have been paper trading another options system successfully. They were bought by or merged trading station ii vs metatrader 4 btc coinbase TradeMonster a bit ago and I do not like the new interface. Does that mean you are mostly placing trades in that time frame? There is plenty of open interest and the ask size is always in the hundreds. A credit spread that is equidistant from the underlying in terms of delta might superficially seem to be ideal. Does anyone use point and figure charts in their technical analysis? One question…In addition to stop losses, do you employ position management in which you look to buy to close the credit spread at a predetermined spread? Do I understand the use of the formulas correctly? Makes no difference what I know if I place trade incorrectly. I noticed the in the forum April you said you were writing a white paper on the subject.

Rick, how far out are you writing the spreads? Still trading on paper, and was posting these for that type of feedback. Visit the InvestmentNews options strategies section for strategic reports and daily options picks. Well, yes and no. For each leg some person or corporation must take the opposite option. Signed up and got funds transfered in less than 2 days all electronically too. It seem that the Call Spread is always further away to the underlying price as compared to the Put Spread. When the total Loss hits 3 times my original credit I put in a buy order to close it. Lee, With the same delta on the short call 0. I do not see a way to set a stop loss on the spread as a whole, only on individual legs. For the credit spreads within IB, what is the option strategy called? If any of you missed that email and want to review it, let Dorrie know info SaferTrader. You also advise that you like to use a price on the stock for your stop. My observation also is that if I just do trade adjustments thru rolling to the next month on the last week, this seems to prevent me from taking a loss. Lee, from a SafeTrader perspective, how many trade should I have.. Every company has its own unique earnings date every 3 months.

So, patience is a virture! Please read Characteristics and Risks of Standardized Options before investing in options. But what if you're stuck in a range-bound market? I thought the idea of using spread as opposed to selling naked should guard against being wiped out in a Black Swan event. Sorry about. Yes, I look occasionally. The theta decay curve for OTM more resembles a straight line not completely straight. Just curious what anyone thought. Since you have the ability to adjust the trade if it gets close to your Short position, please help me undestand. Do you stay with the position until resistance is broken? The one area I have found these to be best suited is short term swing trades using known parameters such free stock market watch software etrade vs ameritrade vs robinhood moving average violations.

Has anyone tried tastytrade? Hope you find this useful. And make no mistake about it: most of the time increasing profit potential means increasing risk potential, and vice versa. It takes its name from the payout diagram resembling a bird with outstretched wings. Thus, to answer your specific question, the money you receive comes from the investor you are selling the 85 put to, and the money your are paying goes to the investor who is selling you the 75 put. I rolled it, but did it poorly in a panic so it was not conforming. I also will use my brokerage OptionsXpress screening tool where one can enter a minimum price,a volume constraint, etc. Does the broker now require margin from both sides? Next ER is Oct. It filled the gap quickly and put me in the hurt. If so what do you do with the remaining margin? Another method is to find out when the last earnings was, it will be 3 months later.

I do credit spreads almost exclusively bull put spreads, bear call spreads and iron condors. Am I thinking about this correctly? Thanks for asking this question Shannon and thank you for the response Lee. Now I have only the put side running with the stop. I think you missed my point. Well, I ran the results from the entire list after the fact as I was not set up and ready to trade yet. I need to know more about what you traded and your strike prices etc to be able to even begin to know how to help. For the credit spreads within IB, what is the option strategy called? Anxious to read it when posted. Still trading on paper, and was posting these for that type of feedback. Are you making sure that you are trading in months without announcements, dividends, conference call, etc? Site Map. AdChoices Market volatility, volume, and system availability may delay account access and trade executions. Interestingly, Warren Buffett is said to favor focusing on the best-of-the-best rather than attempting to maintain a large number of smaller positions. Bottom line, it is not necessary to read the 2nd Edition if you have already absorbed the material in the first edition. For example if the market is in a confirmed up trend is it still safe to open a call credit spread if it meets all of the entry rules? I have still yet to try legging into the IC trade as per your mention to see if it will help in achieveing the overall premium target. In other words, resistance lines are very useful for setting stops that cause you to exit from a trade BEFORE the MRA is reached, hence reducing even further the risk on the trade. It gets me started, but still requires a lot of manual labor. Maximizing net premium, preferring this month vs.

I just wanted to return to the question of Iron Condors once more and provide an example to see how YOU would handle this situation. They were bought by or merged with TradeMonster a bit ago and I do not like the new interface. For illustrative purposes. The Deltas and Distances are in place, for example. The tendency of investors to overshoot the mark elation or depression is a well-known attribute of market action. I used to trade days to expiration now I have to do it about days to expiration. But do they know what they're doing? Can someone recommended a brokerage that will allow me to do spreads and iron condors in small lots contracts perhaps with reasonable commissions? I set a protective stop on a paper trade 30 minutes after opening best penny stocks today under 1 best 10 year stock investment day and it was still filled even though the short leg was still out of the money. Am I correct in my assessment? Thanks for asking this question Shannon and thank you for the response Lee. Lee, pretty sure I know the answer but maybe not. Lee, Thank you so much for the thoroughness of your response. What do you typically look for? But targeting favorable probabilities and prudent risk management can help them pursue a winning strategy. One of the major advantages of credit spread investing is that if, done properly, the investor can profit no matter which way the market moves…so long as the move is not too massive and occurring too quickly. I also think the bi-weekly service for conforming spreads is a great tool. I was doing some screening and found CAT for the December expiration that seems to fit criteria. Also, I may have to accept forex rate dollar to rupee lowest brokerage charges for intraday trading return on margin to satisfy my premium targets by widening the spread.

Trade was not filled, and now the ordering of the Delta looks really odd, plus not so good news recently. Delta interactive brokers stock symbols what happened to vlkay stock estimates the likelihood an option in our case, the short strike price of the spread will finish at or in the money. I really hope to view the same high-grade blog posts by you sierra chart simulated trading forex standard deviation channel indicator on as. The subscription paid for itself at the first trade. I have read about a dozen books on option, and attended many, many hours of classroom instruction. Will the implied volatility leading up to earnings affect my April options or the May options? This is my first month and would appreciate any clues on a stock or index. Would be nice connecting interactive brokers to metatrader aggressive stock trading strategies the forum were more active, though I guess everybody has something better to. One for a bull put spread and another for a bear call spread. I think I started out with the paper account only I may have opened a live account but I went for a number of months before I funded the account with any actual cash. Lee — below is something you wrote on the 7 Feb Generally, it is not productive to enter and exit credit spreads on the basis of talking head forecasts, rumors. Them, later after a move in the underlying, the second spread needed for the IC comes into conformity and the trade can be. I am familiar meaning I have examined their options at the suggestion of a friend. But, if you are willing to assume that as an actual risk on the trade, there is a problem. Still reading the book.

Hi all, can anyone explain to me how to place a stop on the underlying for a spread? Can you put the link in here for that please. However, potential trade set-ups are also being eroded, denying opportunities. Last week saw a significant correction — particularly in tech stocks. Does that mean you are mostly placing trades in that time frame? Hello fellow safertraders out there. What are your views related to selling credit spreads on stocks that have seen recent gaps? I recently bought MIM. As you know, the premium on an option is primarily a function of current distance from underlying, current volatility of the underlying, and time remaining until option expiration. I apologize for my lack of knowledge on the subject, but there are a lot of websites out there that will tell you when the last earnings report was out, but they will not say exactly when the Q2 earnings come out. Doing a buy to close on the more risky short leg for a small amount is possible and removes the risk situation. Cheers dirk.

This is a comparison site. I think it is hard to find a spread with Strike Price difference of and Delta 0. I usually use contingent stop based on the underlying stock or index price when my stop is based on a violation of a support or resistance level that would occur before my MRA was threatened. For March, you will not find any conforming Index spreads due to the current low volatility. I agree with your article regarding weekly options and their use, advantages and disadvantages. If I try to discuss this with others, their eyes glaze over with disinterest. Am I thinking about this correctly? On the other hand, the indices do have the benefit of lower transaction commission costs dollar-for-dollar of total position value, in addition to the potential tax benefit. The price of the underlying stock is always changing. Thanks for the reminder, Felipe! Long a put that is exercised early. The strike is more than enough away based on the MIM rules, however with that gap I would be interested to hear your views. Risking 2 times the net premium collected which means exiting from spread if unfavorable move brings net premium to THREE times net premium collected makes sense. The other method one can use is to use the IVs of the ATM puts and calls using the square roots of the IV and days left in the contract to come up with an approximation of what a 1 standard deviation move would look like. I do not see a way to set a stop loss on the spread as a whole, only on individual legs.