Profiting with Iron Condor Options: Strategies from the Frontline for Trading in Up or Down Markets

Chapter 4. Day Trading Condors

Throughout the book, you have studied a very specific strategy, selling condors for their time value. The basics of the strategy are to sell large condors 6 to 8 weeks away from expiration and to get out a month before expiration. In that strategy you can sell condors on stocks, ETFs, or—best of all—indexes because of their lower sensitivity to news on individual companies.

There is another way to make money selling condors more akin to a day-trading strategy by selling ahead of major news events. The idea of selling condors prior to a big news event seems contradictory to everything you have learned about condors so far. Selling condors is supposed to be about time decay and stability in price. You know for a ...