Share this content on Facebook!
26 Mar 2016
The iron condor credit spread strategy is employed by stock market traders when they think that an inventory will probably trade sideways for a certain amount of time. Perhaps they expect small fluctuations up and down in the underlying stock price, however over the next 30 days price action will remain relatively unchanged. When this is actually the case, equity option trades can make the most of what is recognized as time decay, or positive theta. What theta represents is the decay in the value of an out-of-the-money option as its expiration date approaches. The iron condor setup is merely the mixture of a bull put spread and a bear call spread.options trading

This trade is established by selling out-of-the-money options and...