Understanding Iron Condors

Michael Kealy joins Scott Connor to outline the concept and rationale behind structuring an iron condor options trade. The iron condor consists of two short vertical spreads, using both calls and puts. Call spreads are sold above the underlying stock price and put spreads are sold below. The iron condor is designed to have both upper and lower boundaries, sold for a net credit, and achieves maximum profitability is the stock remains between both short option legs before expiration.

Your First Trade

12 Mar 2021

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Understanding Iron Condors

Michael Kealy joins Scott Connor to outline the concept and rationale behind structuring an iron condor options trade. The iron condor consists of two short vertical spreads, using both calls and puts. Call spreads are sold above the underlying stock price and put spreads are sold below. The iron condor is designed to have both upper and lower boundaries, sold for a net credit, and achieves maximum profitability is the stock remains between both short option legs before expiration.

Your First Trade

12 Mar 2021