Long Iron Condor Spread - Fidelity

An Iron Condor is a directionally neutral, defined risk strategy that profits from a stock trading in a range through the expiration of the options. It benefits from the passage of time and any decreases in implied volatility.

The maximum profit potential for an Iron Condor is the net credit received. Maximum profit is realized when the underlying settles between the short strikes of the trade at expiration. How to Calculate Breakeven s: Short Put Strike - Credit Received. We approach iron condors with similar entry tactics.

Iron Condors Explained | Online Option Trading Guide

When do we close Iron Condors? This can increase our win rate over time, as we are taking risk off the table and locking in profits. When do we manage Iron Condors? We manage iron condors by adjusting the untested side, or profitable side of the spread. We look to roll the untested spread closer to the stock price to collect more premium. We can go as far as rolling our untested spread to the same short strike as our tested spread, which creates an iron fly. Check out this study for more detail on this management tactic!

To reset your password, please enter the same email address you use to log in to tastytrade in the field below. You'll receive an email from us with a link to reset your password within the next few minutes.

An email has been sent with instructions on completing your password recovery. Register today to unlock exclusive access to our groundbreaking research and to receive our daily market insight emails.

Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. Applicable portions of the Terms of use on tastytrade. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, transaction or investment strategy is suitable for any person. Trading securities can involve high risk and the loss of any funds invested.

Investment information provided may not be appropriate for all investors, and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance.

Please read Characteristics and Risks of Standardized Options before deciding to invest in options. Trades for 7 days.

index etf credit spread iron condor option advisory options trading system service using puts and calls, spreads and condors trader strategies

Join Now Sign In Help Open A Tastyworks. Home Watch Live Shows Learn Blog Open A Tastyworks Brokerage Account.

About Us Company Info Contact Us Legal Stuff. Helpful Info Help Glossary Cherry Bomb Daily Recaps. Personalities Tom Sosnoff Liz Dierking Tony Battista Jenny Andrews Vonetta Logan Pete Mulmat. Our Apps tastytrade Mobile Bob The Trader Where's Bob?

Personalities Tom Sosnoff Tony Battista Vonetta Logan. Our Sites tastytrade Blog. More Bob the Trader Get tasty Store.

Short Put Strike - Credit Received tastytrade approach: See All Key Concepts. Iron Condor Videos watched. Join now Register today to unlock exclusive access to our groundbreaking research and to receive our daily market insight emails. Join TastyTrade Free Sign up to get our best stuff delivered to you daily and save videos you want to watch later.