Iron Condor is one of the more popular option trading strategy. It became very popular due to the limited risk profile while maximizing the time value derived from selling options on both directions.
There are many advantages to run an iron condor and we discussed them lengthy.
In this article we will understand how to run a scan and how to read the results.
First thing you can try one of our two predefined scans that are based on Iron Conder:
How to find an Iron Condor in Option Samurai
Reading the Iron Condor results
To execute an Iron Condor you need to preform 4 trades. The order of strike prices indicates the actions to take:
- Sell put
- Buy put
- Sell call
- Buy call
So in this case we will:
- Sell a put of 177.5$
- Buy a put of 175$
- Sell a call of 192.5$
- Buy a call of 197.5$