Iron Condor

The condor spread is one of the lesser known and/or used option spread strategies.
While the name is similar to the more popular ‘iron condor’ strategy - the ‘condor spread’ is different - even while the risk graph of the trade looks the same.
The difference between the condor and the iron condor is that the condor [...]

Several different option spread trading strategies which investors can use for creating monthly income include the iron condor, credit spread (or vertical spread) - the butterfly spread - and others.
Option spread trading refers to the act of selling one option and buying one option. In the case of the iron condor strategy - these options [...]

At the core of the iron condor strategy is the vertical spread.
If we were to reverse engineer the iron condor strategy - take it apart - split it in half - and look at what the spread is actually constructed from - we would find that it is simply 2 credit spreads. A vertical spread [...]

Option selling has become more main stream recently as more and more retail traders learn about the various option spread trading strategies which can provide actually quite impressive returns over short periods of time.
Option selling is the act of an investor ’selling’ an option - either call or put - to bring a credit into [...]

An option selling strategy that has gained a lot of popularity in recent years is the iron condor.
This option spread trading method is comprised of two vertical spreads - or credit spreads - on the same underlying stock / ETF / index. It is made up of an out of the money bear call spread [...]

Similar to an iron condor spread trade, the Condor (without the ‘iron’) is a four legged trade made up of all calls or all puts.
Here is an illustration of a condor spread -
Go long 4 50 Calls
Go short 4 55 Calls
Go short 4 60 Calls
Go long 4 65 Calls
The risk profile of this looks similar [...]

If one were to take the iron butterfly spread apart - reverse engineer it if you will - then take a look at the components - they could come to the determination that the butterfly spread trade is basically a straddle spread - with cheaper wings purchased for protection.
At the core of the trade - [...]

A variety of individual butterfly strategies are in the option income traders ‘toolbox’ for use - including the ‘regular’ butterfly consisting of either calls or puts, the iron butterfly position, and the broken wing butterfly - or ’skewed’ butterfly.
The ‘regular’ or traditional butterfly is made up of either all calls or [...]

Butterfly Spread Trade - March 2010 - RUT
This last week we closed out our RUT Iron Butterfly Trade for a profit of just over 10%.  Total days in trade: 8 days.
Learn more on these butterfly spread trades.

addthis_url = ‘http%3A%2F%2Fwww.ironcondoroptiontradingstrategy.com%2Foption-trades%2Fmarch-2010-butterfly-iron-condor-closed%2F’;
addthis_title = ‘MARCH+2010+BUTTERFLY+-+IRON+CONDOR+CLOSED’;
addthis_pub = [...]

*********************************************
—— OPTION *INCOME* VIDEOS ——
Learn Option Income Trading Strategies
Most Option Traders Don’t Know Exist.
Click Here
*********************************************
In this weeks issue…
*  NEW - LIVE *Option Strategy Trading Lab*
*  Which Way Is This Market Headed?
*  VIDEO: The Protective Put Strategy
*  VIDEO: RUT Bearish Vertical Spread
*  VIDEO: Wall St. Wrap Up & Trader Tax Chat
*  VIDEO: Love Story…
Read this weeks [...]