Maximum loss is the debit you incur to put on the trade between the inside strike price. The iron condor is a limited-risk, limited-profit strategy that benefits from low volatility in the underlying security while the strategy is open.
Maximum gain is realized on expiration date outside the strike prices of the options sold. Position benefits from a increase in volatility Position is hurt from the passage of time Position benefits from a active moving market Long 2 XYZ OCT 70 Call $1.25 you purchase ($ money out) Short 2 XYZ OCT 65 Call $2.25 you sell ($ money in) Essentially, Iron Condors are a strategy that will profit if a stock stays within a defined trading range. 19 hours ago &0183 &32 An iron condor is a neutral trade that relies on a stock staying within a range. Short 2 XYZ OCT 60 Put $3.25 you sell ($ money in) Long 2 XYZ OCT 55 Put $.75 you purchase ($ money out) 1 Some of the key features of the strategy include: An iron condor spread is constructed by selling one call spread. Here is an example of this option strategy: An iron condor is an options strategy that involves four different contracts. The position will also benefit from an increase in volatility The transaction costs for this strategy are very high, since you must consider the slippage (bid-ask spread) for four separate positions. A Iron Condor - Sell is a strategy you can use when you feel the underlying asset is going to make a price move, but you are not sure of direction.Ī Iron Condor - Sell has a limited maximum profit potential. It involves four transactions purchasing a Put option at the lowest strike price, selling one Put options at the next higher strike price, selling a Call at the same strike price, and purchasing a Call option at the next higher strike price.
Analysis Techniques & Strategies Iron Condor - Sell (Search Strategy)Ī Iron Condor - Sell is a neutral active market strategy similar to a Butterfly spread. This week Options Tribe Member Dan Davis makes his debut presentation on the Options Tribe to discuss his specific approach to trading iron condors.
0 kommentar(er)
