So, you’ve decided that buying iron condors is a strategy that meets your needs and will help you meet your financial goals. However, when you buy an iron condor, there are often many choices you can make that can affect its outcome. Among the decisions you must make when setting up an iron condor are the following:
How much you should try to earn per iron condor?
How much risk to take when trying to earn that profit?
Which options to trade?
How far out of the money (OTM)?
How much time before the options expire?
How wide are the call and put spreads?
Which underlying asset to choose?
Faced with these choices, it’s possible to be frozen with indecision. This article provides guidance in helping you set up an iron condor that will meet your expectations and satisfy your personal preferences.
Determining Risk/Reward Potential The probability of earning a profit is related to which options are sold (how far out of the money), not which options are bought. For readers who...
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