![]() Just sit there and convince yourself that the underlying is going to come back and this trade is going to be a winner. Do NOTHING. This is probably the worst thing anyone can do.Here are some of the possible Iron Condor Adjustments you can make: Even high probability Iron Condors will not win 100% of the time, but if they’re managed the right way they can be profitable 8 out of 10 times. When Iron Condors are set up with a high probability of profit, they can lose a lot more than they can make. ![]() The most this strategy can lose is the difference between long and short options of each spread less the credit received. The most Iron Condor can make is the credit received for selling the out of the money credit spreads. This strategy has a limited risk and a limited profit risk profile. High probability Iron Condors can lose a lot more than they can make, and it is very important not to let a small loser turn into a big ugly one.īefore we take a look at a few different ways Iron Condors can be adjusted, let’s take a look at Iron Condor features.Īn Iron Condor involves selling a Bull Put spread and a Bear Call spread simultaneously. One thing you don’t want to do is to close your eyes and hope that the underlying stock goes back to where it was and that this trade will somehow make a profit. I’m a big believer that any adjustments to this trade need to be planned before the trade is actually put on. ![]() Other times, this trade needs to be either adjusted or closed out for a loss. Sometimes, even with the underlying stock making a big move, it is possible to make a profit with this strategy. What hurts this strategy is when the underlying stock makes a big move in either direction before the expiration date of this strategy. This options trading strategy profits if the underlying stock remains within a specified range. One of the best strategies for traders that don’t want to chase the market or guess which way the market moves next is an Iron Condor. Iron Condor adjustments are just as important as entry and exit. Iron Condor Adjustments is a very important topic.
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