- Max Loss = Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
- Max Loss Occurs When Price of Underlying >= Strike Price of Long Call OR Price of Underlying
OptionTiger – The CondorMAX Iron Condors + DayTradeMAX
Elite proprietary intellectual property to trade Iron Condors. Techniques can be 最完整Iron Condor铁秃鹰期权交易指南 applied to credit spreads for a positive return on every trade.
Tame the Iron Condor strategy
And make every Iron Condor pay
What is the single biggest problem facing Iron 最完整Iron Condor铁秃鹰期权交易指南 最完整Iron Condor铁秃鹰期权交易指南 Condor traders..
Even Advanced Options traders..
CONSISTENCY…CONSISTENCY…CONSISTENCY…
Even expert traders will do well four times out of five with Iron condors..
But let’s face it..The fifth time, we give it all back. This happens too often…
But not any more…
CondorMAX is the most sophisticated 最完整Iron Condor铁秃鹰期权交易指南 system to trade Iron Condors.
Make your Iron Condors pay every time.
Presenting the CondorMAX System
Solve the number one problem for traders – CONSISTENCY
Put an “edge” on every Iron Condor trade
Manage the trade using proprietary techniques
Never be scared your Iron Condor will hurt 最完整Iron Condor铁秃鹰期权交易指南 from big moves
Keeps you at peace knowing your trade is 100% Flash Crash Proof
Trade can 最完整Iron Condor铁秃鹰期权交易指南 profit regardless of any market sentiment
Lets you profit at all volatility levels, regardless of whether VIX is at 15 or 50
Lets you reap benefits of Time Decay, and volatile moves (How cool is that)
Avoids the big paper losses you face with credit spreads and iron condors
Can repeat the trade every month, with stocks, ETFs and Indices
No more “fishing” for good trades..This trade always exists..
And make Iron Condor trades 最完整Iron Condor铁秃鹰期权交易指南 pay consistently
Powerful Intraday trading system with customized indicators. Get high probability trade entries. Comes with risk management techniques.
GET THE COMPLETE DAYTRADEMAX BLUEPRINT IN THIS 2-HOUR CLASS.
Find the 最完整Iron Condor铁秃鹰期权交易指南 highest probability trade entries on a daily basis
Laser targeted entry for a 20% to 100% potential
High-probability signals for an EDGE on every trade
Customized indicators to give the most powerful SIGNALS
Low-risk, and very HIGH REWARD on every trade
Comes with complete trade entry and trade management techniques
The DayTradeMAX System
Use Options to generate double or triple digit returns in 1 最完整Iron Condor铁秃鹰期权交易指南 to 2 days
Proprietary signals delivers the best trade opportunities
Customized indicators for accurate trade entry
Loss mitigation and Profit protection techniques
Ideal for small and large account sizes
Builds small accounts rapidly
Will work on any market world-wide
Screenshots (Click to enlarge)
OptionTiger – The CondorMAX Iron Condors + DayTradeMAX Contents: Videos
Download links are hidden! Click bellow to get the VIP membership or login.
Iron Condors
Writing in-the-money calls is a good strategy to use if the options trader is looking to earn a consistent moderate rate of return.
| Iron Condor Construction |
| Sell 1 最完整Iron Condor铁秃鹰期权交易指南 OTM Put Buy 1 OTM Put (Lower Strike) Sell 1 OTM Call Buy 1 OTM Call (Higher Strike) |
Profit is limited to the premium earned as the writer of the call option will not be able to profit from a rise in the price of the underlying security.
Offers more downside protection as premiums collected are higher 最完整Iron Condor铁秃鹰期权交易指南 than writing out-of-the-money calls.
Limited profit
As the striking price is lower than the price 最完整Iron Condor铁秃鹰期权交易指南 最完整Iron Condor铁秃鹰期权交易指南 paid for the underlying stock, any upward price movement will not benefit the call 最完整Iron Condor铁秃鹰期权交易指南 writer since he has agreed to sell the shares to the option holder at the lower striking price. Therefore, the maximum gain to be made writing in-the-money calls is limited to the time value of the premium at the time of writing the 最完整Iron Condor铁秃鹰期权交易指南 call.
The formula for calculating maximum profit is given below:
- Max Profit = Net Premium Received - Commissions Paid
- Max Profit Achieved When Price of Underlying is in 最完整Iron Condor铁秃鹰期权交易指南 between Strike Prices of the Short Put and the Short Call
Greater downside protection
As the premiums received upon writing in-the-money calls is higher than writing out-of-the-money calls, downside protection is greater as the higher premium can better offset the paper loss should the stock 最完整Iron Condor铁秃鹰期权交易指南 最完整Iron Condor铁秃鹰期权交易指南 price go down.
The formula for calculating maximum loss is given below:
- Max Loss = Strike Price of Long Call - Strike Price of Short Call - Net Premium Received + Commissions Paid
- Max Loss Occurs When Price of Underlying >= Strike Price of Long Call OR Price of Underlying
Breakeven Point(s)
There are 2 break-even points for the iron condor position. The breakeven points can be calculated using the following 最完整Iron Condor铁秃鹰期权交易指南 formulae.
- Upper Breakeven Point = Strike Price of Short Call + Net Premium Received
- Lower Breakeven Point = Strike Price of Short Put - Net Premium Received
Example
Suppose 最完整Iron Condor铁秃鹰期权交易指南 the stock XYZ is currently trading at $50 in June. An options trader decides to 最完整Iron Condor铁秃鹰期权交易指南 write a JUL 45 covered call for $7. He pays $5000 for the 100 shares of XYZ and receives $700 in premium giving a net investment of $4300.
The stock then rallies to $55 at expiration and the call gets assigned. As per 最完整Iron Condor铁秃鹰期权交易指南 最完整Iron Condor铁秃鹰期权交易指南 the options contract, the trader has to sell the 100 shares of XYZ at 最完整Iron Condor铁秃鹰期权交易指南 最完整Iron Condor铁秃鹰期权交易指南 the striking price of $45 and so he receives $4500 for the shares sold. Since his original investment is $4300, his net profit for the entire trade is only $200.
However, should the stock price go down to $45 instead, he still makes a profit since the $700 in premiums received more than offset the $500 in paper loss of the 100 shares he held which has lost $5 a share in value.
At $45, the call most likely will not get assigned since there is no intrinsic value left in the option. Since the shares did not get called 最完整Iron Condor铁秃鹰期权交易指南 最完整Iron Condor铁秃鹰期权交易指南 away, the call writer can either sell the shares for $4500 giving him a net profit of $200 for the entire trade or write another call against the shares 最完整Iron Condor铁秃鹰期权交易指南 held.
Note: While we have covered the use of this strategy with reference to stock options, the iron condor is equally applicable using ETF options, index options as well as options on futures.
Commissions
Commission charges can make a significant impact to overall profit 最完整Iron Condor铁秃鹰期权交易指南 最完整Iron Condor铁秃鹰期权交易指南 or loss when implementing option spreads strategies. Their effect is even more pronounced for 最完整Iron Condor铁秃鹰期权交易指南 the iron condor as there are 4 legs involved in this trade compared to simpler strategies like the vertical spreads which have only 2 legs.
If you make multi-legged options trades frequently, you should check out the brokerage firm OptionsHouse.com where they charge a low fee of only $0.15 per contract (+$4.95 per trade).
Similar Strategies
The following strategies are similar to the iron condor in that they are also low volatility strategies that have limited profit potential and limited risk.
OptionTiger – The CondorMAX Iron Condors + DayTradeMAX
Elite proprietary intellectual property to trade Iron Condors. Techniques can be 最完整Iron Condor铁秃鹰期权交易指南 最完整Iron Condor铁秃鹰期权交易指南 applied to credit spreads for a positive return on every trade.
Tame the Iron 最完整Iron Condor铁秃鹰期权交易指南 Condor strategy
And make every Iron Condor pay
What is the single biggest problem facing Iron 最完整Iron Condor铁秃鹰期权交易指南 最完整Iron Condor铁秃鹰期权交易指南 Condor traders..
Even Advanced Options traders..
CONSISTENCY…CONSISTENCY…CONSISTENCY…
Even expert traders will do well four times out of five with Iron condors..
But let’s face it..The fifth time, we give it all back. This happens too often…
But not any more…
CondorMAX is the most sophisticated 最完整Iron Condor铁秃鹰期权交易指南 最完整Iron Condor铁秃鹰期权交易指南 system to trade Iron Condors.
Make your Iron Condors pay every time.
Presenting the CondorMAX System
Solve the number one problem for traders – CONSISTENCY
Put an “edge” on every Iron Condor trade
Manage the trade using proprietary techniques
Never be scared your Iron Condor will hurt from big moves
Keeps you at peace knowing your trade is 100% Flash Crash Proof
Trade can profit regardless of any market sentiment
Lets you profit at all volatility levels, regardless of whether VIX is at 15 or 50
Lets you reap benefits of Time Decay, and volatile moves (How cool is that)
Avoids the big paper losses you face with credit 最完整Iron Condor铁秃鹰期权交易指南 spreads and iron condors
Can repeat the trade every month, with stocks, ETFs and Indices
No more “fishing” for good trades..This trade always exists..
And make Iron Condor trades pay consistently
Powerful Intraday trading system with customized indicators. Get high probability trade entries. Comes with risk management techniques.
GET THE COMPLETE DAYTRADEMAX BLUEPRINT IN THIS 2-HOUR CLASS.
Find the highest probability trade entries on a daily basis
Laser targeted entry for a 20% to 最完整Iron Condor铁秃鹰期权交易指南 100% potential
High-probability signals for an EDGE on every trade
Customized indicators to give the most powerful SIGNALS
Low-risk, and very HIGH REWARD on every trade
Comes with complete trade entry and trade 最完整Iron Condor铁秃鹰期权交易指南 management techniques
The DayTradeMAX System
Use Options to generate double or triple digit returns in 1 to 2 days
Proprietary signals delivers the best trade opportunities
Customized indicators for accurate trade entry
Loss mitigation 最完整Iron Condor铁秃鹰期权交易指南 and Profit protection techniques
Ideal for small and large account sizes
Builds small accounts rapidly
Will work on any market world-wide
Screenshots (Click to enlarge)
OptionTiger – The CondorMAX Iron Condors + DayTradeMAX Contents: Videos
Download links are hidden! Click bellow to get the VIP membership or login.