LONG IRON CONDOR
#pixarts.trade , #safebull
Market View – A significant move up or down The Trade – Buy a Put below stock price; Buy a Call above the stock price. Your view is that the stock will cross these strikes. Sell a lower put and a higher call for reducing premium Premium – Pay Margin – Required When To Do […]
Market View – A significant move up or down
The Trade – Buy a Put below stock price; Buy a Call above the stock price. Your view is that the stock will cross these strikes. Sell a lower put and a higher call for reducing premium
Premium – Pay
Margin – Required
When To Do
- When the stock is going to move big in one direction
- Avoid buying high IV
Pros
- Lower premium than straddle
- Low Vega risk and theta risk
Cons
- Low probability of success
Time and Volatility
- Loses time value every day
- Gains slightly if IV goes up
Max Loss : Net Premium
Max Profit : Strike price of short call – strike price of long call – premium
