Iron Condors have been the buzz lately on my social media. People have discovered or re-discovered them because they are WORKING now! But should traders keep using them without knowing WHY they are working? If you are getting into Iron Condors you MUST watch this to understand the key metrics professional options sellers look at when placing their...
Skew. It can be a pain in the butt if you want to trade both delta neutral and probability neutral. In QQQ, a delta neutral setup at the moment would be: selling a spread on the put side with the short put leg at the 275 (17 delta) and on the call side with the short call leg at the 344 (17 delta). However, this results in a short put strike 38 strikes away...
Iron Condor - a spread with limited risk and limited profit, using four different striking prices but the same expiration date. The position is a combination of puts and calls all of which are Out of the money. The maximum profit is realized between the two inner strikes, and the maximum loss is realized outside of the higher and lower strikes. This strategy is...