Bullshit Free Guide to Iron Condors - Options trading IQ
Bullshit Free Guide to Iron Condors - Options trading IQ
Bullshit Free Guide to Iron Condors - Options trading IQ
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PUTTINGG<br />
IT ALL TOGETHE ER<br />
Placing tthe<br />
above two tr rades <strong>to</strong>gether creates c and <strong>Iron</strong> Condor. In this example, e the traader<br />
is betting thhat<br />
ABC will stayy<br />
somewhere between<br />
$45 and $50<br />
betweenn<br />
now and Oc<strong>to</strong>b ber expiration. If that occurs, the trader keeps the<br />
<strong>to</strong>tal $200 in ppremium.<br />
One addvantage<br />
of <strong>Iron</strong>n<br />
<strong>Condors</strong> is thatt<br />
you can essenti ially<br />
receive ddouble<br />
the incom me for the same amount<br />
of risk. If you place the Bu ull Put Spread or BBear<br />
Call Spread in isolation, the mmaximum<br />
risk woould<br />
be $300. If you<br />
placed both<br />
at the same time t <strong>to</strong> create an n <strong>Iron</strong> Condor, your<br />
capital at risk slightly s less because<br />
of the 2 lots oof<br />
premium you are bringing in.<br />
Let’s look<br />
at the details of f an <strong>Iron</strong> Condor using the above examples:<br />
Maximum<br />
Profit = $200<br />
Maximum<br />
Loss = $300<br />
Potentiaal<br />
Return = 66.67% %<br />
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