We will establish our trade positions when we believe that the underlying asset will not move to anywhere new our short strike. This means that we like to look for positions that are over priced. To do so, we look specifically for options that have a relatively higher level of volatility. This is the only way to ensure that we will be profitable in the long run. We like to stake the odds of winning in our favor for each and every of our trades. Before we make any new trade recommendations, we look for positions that have an extremely high percentage of profitability. Our trading approach is designed to consistently profit from Iron Condors. What makes us stand out? In trading, the only objective is to make money. Holding period is always not longer than 60 days. The IronCondorSpread Newsletter was designed to identify low risk option trading opportunity when an index remains in a narrow trading range during the current expiration cycle.

Some brokers may even provide better leverage when you trade Iron Condor with them. Traders with any level of option trading experience can use this trading approach.ĭepending on your brokerage expertise and software, these spreads should be available electronically with single click functionality. Iron Condor Spreads is a market neutral strategy that has positive time decay and negative gamma with limited risk. There are not many option traders who understand the benefit with trading spreads because it simply looks too complicated. Time decay erodes the value of option prices. This strategy can be used regularly on a monthly basis to consistently generate a healthy cash flow in your trading business. In other words, as long as the price of the asset is above your bullish short strike and below the bearish short strike, the option trader will profit from both spreads through time decay. Profit is realized when the underlying asset remains above the lower break even point or below the upper break even point.

Since there are bullish and bearish spreads involved in the Iron Condor Option Trading Strategy, there is an upper break even and a lower break even point. Depending on how the spreads are constructed, option traders will potentially be able to obtain twice the collect premium over a single spread position. Iron Condor Spread is the combination of a Bullish Vertical Credit Spread and a Bearish Vertical Credit Spread on the same underlying asset.

Iron condor options