Master Iron Condors - Double the credit for half the risk
- 4.5
-
![]()
![]()
![]()
![]()
![]()
Brief Introduction
The Iron Condor is one of the most popular Options strategies, and it is the undisputed "King of Time Decay strategies".Description
THE IRON CONDOR STRATEGY - KING OF TIME DECAY STRATEGIES
The Iron Condor Spread is one of the most popular trades of all Options trades, and it is the undisputed "King of Time Decay or Income strategies". It is special because you get to double the premium collected, reduce your risk levels as compared to normal credit spreads, double the amount of time decay, and maintain a delta neutral position, at least when the trade is first put on. The negative with the strategy is that it's a heavily Vega negative position. We dissect the Iron Condor in this trade, put on a real trade on AAPL, and take it through a couple of weeks. We analyze the risks, set adjustment points, and discuss suitable adjustment strategies for different market situations as the trade develops.
What you will master
How do we construct an Iron Condor
Why choosing the right strike prices are important for the Iron condor
Should we try to make it a delta neutral trade and why
What are its special characteristics
How is the premium doubled
Why is the Iron Condor a popular trade
Why are margin requirements less on an Iron Condor
What should we watch for in terms of Vega exposure
What are good adjustments for an Iron Condor
When do we use the simple adjustments and when do we use the complex one
Is Rolling an Iron condor leg a viable strategy
What are the options if we don't want to roll a losing Iron condor leg
Why is there an automatic profit component in an Iron Condor
How can we optimize the entry of an Iron condor
Requirements
- Requirements
- Excellent knowledge of Credit spreads and all material before it
- Excellent understanding of Time decay and Implied Volatility concepts
Hari Swaminathan
4.5 Raiting
Master Iron Condors - Double the credit for half the risk
- 4.5
-
![]()
![]()
![]()
![]()
![]()
The Iron Condor is one of the most popular Options strategies, and it is the undisputed "King of Time Decay strategies"....
