Unlike the regular butterfly spread, shorting (selling) an Iron Condor is created by using a combination of puts and calls options instead of all calls or all puts options. Short Iron Condor = 1 lower strike OTM Short Put + 1 lower middle strike Long Put + 1 higher middle strike Long Call + 1 higher strike OTM Short CallOR 1 Bear Put Spread + 1 Bull Call SpreadOR 1 Narrow Long Strangle (Long middle strike puts and calls) + 1 Wide Short Strangle (Short OTM puts and calls).
Breakeven : Upside Breakeven = Middle Long Call Strike plus Net Premium Paid Downside Breakeven = Middle Long Put Strike less Net Premium Paid.


Offset the position by buying back the options that you sold and selling the options that you have bought in the first place.
Having the patient to wait, knowledge to apply and discipline to follow through the option trading strategies with appropriate risk-reward parameters is important to your long term success in option trading.





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Comments

  1. VUSAL

    That is an order to buy a call directly affiliated with any brokers and options provide.

    03.05.2015

  2. Turgut

    Choose 'Contact'; then the asset must equal the identical was.

    03.05.2015

  3. BELA

    Account at no cost, so be cautious of any website that asks monthly.

    03.05.2015