Or above the highest strike price of all the options involved. Is at or below the lowest strike price and also occurs when the stock price is at It happens when the underlying stock price on expiration date The maximum possible profit for a short condor is equal to the initial credit receivedĮntering the trade. Legs are involved in this trading strategy and a net credit is received on entering The trader enters a short call condor by buying a lower strike in-the-money call, selling an even lower striking in-the-money call, buyingĪnd selling another even higher striking out-of-the-money call. Using calls, the options trader can setup a short condor by combining a bear call spread and a bull call spread. Underlying stock is perceived to be making a sharp move in either direction. It is a limited risk, limited profit trading strategy that is structured to earn a profit when the The short condor is a neutral strategy similar to the
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |