關於我

我的相片
80後香港人,旅居全世界

Option Trading Lesson 2.4

What Is an Iron Condor?

An iron condor is an options strategy consisting of two puts (one long and one short) and two calls (one long and one short), and four strike prices, all with the same expiration date. 


The iron condor strategy has limited upside and downside risk because the high and low strike options, the wings, protect against significant moves in either direction. Because of this limited risk, its profit potential is also limited.

LC 110, SC 105, SP 95, LP 90


The options that are further OTM, called the wings, are both long positions. Because both of these options are further OTM, their premiums are lower than the two written options, so there is a net credit to the account when placing the trade. 


龍門 (95-105)外再每一邊加一個網 (LC 110, LP 90)


The options that are further OTM, called the wings, are both long positions. Because both of these options are further OTM, their premiums are lower than the two written options, so there is a net credit to the account when placing the trade. 

Iron Condor Profits and Losses

The maximum profit for an iron condor is the amount of premium, or credit, received for creating the four-leg options position.


The maximum loss is also capped. The maximum loss is the difference between the long call and short call strikes, or the long put and short put strikes. Reduce the loss by the net credits received, but then add commissions to get the total loss for the trade.

沒有留言:

發佈留言

《關係裡沒有不耗能》

關係一定耗能,但真心的愛會為關係充電。 有些人進入你的生命,是來拔電線的,有些人,是幫你接上插座的。但不管是哪一種,只要你還有血、有心、有情緒,你就會消耗。 那些嘴上說著「我想要一段不耗能關係」的人,多半是受過傷,怕再被捲進去那種消耗。他們想要的是「安全」,不是「連結」。 可是真...