I often get asked how I mange multiple iron condor trades at once. As an iron condor consists of four legs to make one trade it can be difficult to keep track of each strategy. This video will show you one solution of how to manage an iron condor or any other option strategy. Manage Iron Condor Strategies.
Iron Condor, Stock and Option Portfolio Management
One question I often get asked is how to choose the strike price of an option.
Because when trading Iron Condors or any short option startegy you want to ensure the sold strike will expire worthless.
Now we can never now 100% if it will expire worhtless but we can use a Options Probability Calculator to determine the probability of the option expiring worhtless.
The probability calculator will take into account the volatility of the underlying stock allowing you to get a very good idea of the probabilities of your option expiring out of the money.
The other method I use is the option delta. If a call option has a delta of 0.5 it is saying the option will have ~~50% chance of expiring in or out of the money.
A 0.5 delta option will normally be At the Money. Put options will show a negative delta for the same strike.
delta, Iron Condor, options probability calculator, Options Trading
If you have not so already you can download the first version of the Iron Condor Strategy
I will post updates each time I open a new strategy so you can see the result in real time.
Any questions let me know.
ASX options, Iron Condor, stock market
