Short Iron Condor
#pixarts.trade , #safebull
Market View : Range-bound, not moving The Trade – Sell a Put below stock price and sell a Call above the stock price. Your view is that the stock won’t cross these strikes. Buy a lower Put and a higher Call for protection on both sides just in case you’re wrong. Premium – Receive Margin […]
Market View : Range-bound, not moving
The Trade – Sell a Put below stock price and sell a Call above the stock price. Your view is that the stock won’t cross these strikes. Buy a lower Put and a higher Call for protection on both sides just in case you’re wrong.
Premium – Receive
Margin – Required
When To Do
- If the stock will stay still and expire between the call and put strike
- Avoid trending markets
- Avoid selling low IV
Pros
- Delta Neutral – Immune to small moves
- Make money if nothing happens
- Limited loss
Cons
- None
Time and Volatility
- Gains time value every day
- Loses moderately if IV goes up
Max Loss – Buy strike – Sell strike – Net premium
Max Profit – Net premium