Risk Profile: Strangle and Iron Condor

In this lesson we will analyze the risk profile of Strangles and Iron Condors; their advantages and disadvantages, buying power reduction considerations and how to structure and manage them. We will also determine the market conditions that make these strategies a good fit for your overall portfolio.

Strangles are undefined risk positions that take advantage of time decay and Implied Volatility's mean reversion without necessarily having a directional component to them. Iron Condors are similar but define the risk and max loss by working with short spreads instead of short naked options.

These are strategies that beginner traders often use when they start looking at delta-neutral positions and how to take advantage of option properties that are not related to a directional outlook.

01:16 Strangle
06:42 Iron Condor
15:42 Example Strangle
26:39 Example Iron Condor
36:55 Trades with real data on the Trading Platform

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Видео Risk Profile: Strangle and Iron Condor канала Options In Plain English