25 lines
1.2 KiB
Plaintext
25 lines
1.2 KiB
Plaintext
Iron Condor
|
|
An iron condor is similar to a condor, but with a mix of both calls and puts.
|
|
Essentially, the condor and iron condor are synthetically the same.
|
|
Short Iron Condor
|
|
Long one put with strike A; short one put with a higher strike, B; short one
|
|
call with an even higher strike, C; and long one call with a still higher
|
|
strike, D. The options are on the same security and in the same expiration
|
|
cycle. The put credit spread has the same distance between the strike prices
|
|
as the call credit spread.
|
|
Short Iron Condor Example
|
|
Buy 1 XYZ November 70 put (A)
|
|
Sell 1 XYZ November 75 put (B)
|
|
Sell 1 XYZ November 90 call (C)
|
|
Buy 1 XYZ November 95 call (D)
|
|
Long Iron Condor
|
|
Short one put with strike A; long one put with a higher strike, B; long one
|
|
call with an even higher strike, C; and short one call with a still higher
|
|
strike, D. The options are on the same security and in the same expiration
|
|
cycle. The put debit spread (strikes A and B) has the same distance between
|
|
the strike prices as the call debit spread (strikes C and D).
|
|
Long Iron Condor Example
|
|
Sell 1 XYZ November 70 put (A)
|
|
Buy 1 XYZ November 75 put (B)
|
|
Buy 1 XYZ November 90 call (C)
|
|
Sell 1 XYZ November 95 call (D) |