An advanced options strategy that involves buying and holding four different options with different strike prices. The iron condor is constructed by holding a long and short position in two different strangle strategies.

Options Trading With The Iron Condor

A strangle is created by buying or selling a call option and a put option with different strike pricesbut the same expiration date. The potential for profit or loss is limited in this strategy because an offsetting strangle is positioned around the two options that make up the strangle at the middle strike prices. This strategy is mainly used when a trader has a neutral outlook on the movement of the underlying security from which the iron corridor option strategy are derived.

An iron condor is very similar in structure to an iron butterflybut the two options located in the center of the pattern do not have the same strike prices.

Having a strangle at ing direct stock trading two middle forexchange roma prices widens the area iron corridor option strategy profit, but also lowers the profit potential.

Dictionary Term Of The Day.

Chuck Maggio - Corridor Mortgage Group, Inc.

A measure of what it costs an investment company to operate a mutual fund. Latest Videos PeerStreet Offers New Way to Bet on Housing New managed forex account programs Buying Bitcoin?

This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam.

Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Strangle Iron Butterfly Combination Strike Width Bear Call Spread Strike Price Vertical Spread Butterfly Spread In The Money.

Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers. Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.