Iron Condor Options Trading Strategy

The Iron Condor is one of the most popular Options strategies, and it is the undisputed "King of Time Decay strategies".

Last updated 2022-01-10 | 4.3

- Understand what an Iron Condor strategy is
- Master the trade setup criteria for an Iron Condor
- Understand the profit mechanics from an Iron Condor

What you'll learn

Understand what an Iron Condor strategy is
Master the trade setup criteria for an Iron Condor
Understand the profit mechanics from an Iron Condor
Why the Iron Condor is one of the most popular strategies of professional traders
What are the danger points in an Iron Condor and how do we deal with them
What are appropriate adjustment strategies for Iron Condors
How do we manage the losing the side of an Iron Condor
What is "rolling a spread" and how can we roll a losing side profitably

* Requirements

* Excellent knowledge of Credit spreads and all material before it
* Excellent understanding of Time decay and Implied Volatility concepts

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

 

 

Who this course is for:

  • This is an advanced level course, so students must be familiar with Credit spreads
  • Anyone wanting to create consistent monthly income strategies
  • Busy professionals who don't have much time to look at the markets but need a reliable risk-defined strategy for monthly income

Course content

4 sections • 9 lectures

What is an Iron Condor and why is it a popular strategy Preview 05:38

What is an Iron Condor strategy, and why is it called an Iron Condor. This lecture explains the basics of an iron condor, its construction and analyzes the time decay and Volatility considerations. Please also see supplementary video

General Iron condor setup guidelines.. Preview 10:34

General guidelines for an Iron condor

Trade setup of the Iron Condor Preview 10:50

A detailed analysis of an Iron Condor trade on Apple (AAPL), before the trade is executed.

Managing the Iron Condor to a successful exit Preview 12:57

The mechanics of how the Iron condor makes a profit, and what are the considerations for a great exit on the trade

Iron Condor adjustments Preview 12:20

An overview of the two most common (or simple) adjustments for the Iron condor.

Rolling an Iron Condor leg to the next month Preview 10:45

This is a more complex but very effective adjustment for Iron Condors. We show you exactly how to take a losing side of the Iron condor and "roll it" into the next month in a profitable manner, and in a way that recovers its current losses

CONCLUSION Preview 06:40

A wrap-up of this amazing strategy. Includes a couple of advanced tips on how to maximize trade entry for Iron condors using a very nifty technique.

Iron Condors Quiz

BONUS LECTURE - DONT MISS !! Preview 07:10