- 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 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 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 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 it all back. This happens too often…
But not any more…
CondorMAX is the most sophisticated system to trade Iron Condors.
Make your Iron Condors pay every time.
Presenting the CondorMAX 最完整Iron Condor铁秃鹰期权交易指南 System
Solve the number one problem for traders – CONSISTENCY
Put an “edge” on every Iron 最完整Iron Condor铁秃鹰期权交易指南 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 最完整Iron Condor铁秃鹰期权交易指南 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 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 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 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 OTM Put Buy 1 OTM Put (Lower Strike) Sell 1 OTM Call Buy 1 OTM 最完整Iron Condor铁秃鹰期权交易指南 Call (Higher Strike) |
Profit is limited to the premium earned as the writer 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 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 than writing out-of-the-money calls.
Limited profit
As the striking price is lower than the price 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 最完整Iron Condor铁秃鹰期权交易指南 lower striking price. Therefore, the maximum gain to be made writing in-the-money calls is 最完整Iron Condor铁秃鹰期权交易指南 limited to the time value of the premium at the time of writing the 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 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 最完整Iron Condor铁秃鹰期权交易指南 greater as the higher premium can better offset the paper loss should the stock price go down.
The formula for calculating maximum loss is given below:
- Max 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 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 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 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 the options contract, the trader has to sell the 100 shares of XYZ at 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 最完整Iron Condor铁秃鹰期权交易指南 paper loss of the 100 shares he held which has lost $5 a share in 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 value.
At $45, the call most likely will not get assigned since there is 最完整Iron Condor铁秃鹰期权交易指南 no intrinsic value left in the option. Since the shares did not get called 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 held.
Note: While we have covered the use of this strategy with reference to 最完整Iron Condor铁秃鹰期权交易指南 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 or loss when implementing option spreads strategies. Their effect is even more pronounced for the iron condor as there are 4 legs involved in this trade compared to simpler 最完整Iron Condor铁秃鹰期权交易指南 strategies like the vertical spreads which have only 2 legs.
If you make multi-legged 最完整Iron Condor铁秃鹰期权交易指南 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 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 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 system to trade Iron Condors.
Make your Iron Condors pay every time.
Presenting the CondorMAX 最完整Iron Condor铁秃鹰期权交易指南 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 最完整Iron Condor铁秃鹰期权交易指南 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 pay consistently
Powerful Intraday trading system with customized indicators. Get high probability trade entries. Comes with 最完整Iron Condor铁秃鹰期权交易指南 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 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 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 + 最完整Iron Condor铁秃鹰期权交易指南 DayTradeMAX Contents: Videos
Download links are hidden! Click bellow to get the VIP membership or login.