Vanilla Options Iron Condor Spread Strategies
The iron condor is a strategy that profits if the underlying stock or index keeps within a certain range over the duration of an investment.
Investors obviously make money when stocks go up or down a lot. If you buy a stock for cash, you only make money when the share price increases. On the other hand, iron condors make money irrespective of stock direction. As long as the stock stays within a small range, investors will make money whether the stock moves down or up a little or moves sideways. This is possible because an iron condor is a combination of a bear call spread and a bull put spread on the same underlying stock. It consists of one long and one short call option and one long and ...
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