I’ve had a few people ask me recently for my iron condor pdf strategy guide, so here you go. It’s over 5,000 words, let me know what you think.
Iron condors are a combination of a bull put spread and a bear call spread. They are a neutral strategy that profit through time decay when stocks experience low realized movement.
An iron condor is a created when you sell an out-of-the-money call and put and buy a further out-of-the-money call and put.
This results in a credit being received as they bought options are less expensive than the sold options.
When trading iron condors, it is crucial to have a solid grasp of implied volatility and the vix term structure.
Iron condors are one of the most popular strategies with option income traders, but you really need to understand what you are doing.
It’s important to build a good base knowledge before even thinking about profiting with iron condor options.
If you’re knew to options, I strongly recommend you read options trading 101 before downloading the above pdf file.
The pdf file above contains the following sections and is over 5,00 words:
- Introduction
- When To Enter Iron Condors
- Long-Term Or Short-Term Iron Condors
- Understanding Contango and Backwardation
- Legging In To An Iron Condor
- Selecting Iron Condor Strikes
- Delta Dollars
- Delta Hedging
- Should You Trade Index or ETF Options?
- How To Trade Iron Condors With a Small Account
- How To Survive a Flash Crash
- Understanding Gamma Risk
- Iron Condor Adjustments
- Are 10% Returns Possible With Iron Condors
- Iron Condor Examples
- Conclusion
Once you’ve been through the above information, please feel free to send me an email with any questions, or ask me on Twitter.
Trade safe!
Disclaimer: The information above is for educational purposes only and should not be treated as investment advice. The strategy presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in this strategy should do their own research and seek advice from a licensed financial adviser.
Nice