Iron Condor Options Trading Strategy
Tags: Options Trading
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
* 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.