§ 01
Iron Condor: Sell OTM Put + Buy further OTM Put + Sell OTM Call + Buy further OTM Call
§ 02
Iron condors have a high win rate (typically 60–80%) but unfavorable risk/reward. You might collect $250 per condor but risk $250–$500. The math works because of the high probability of profit, but one big loss can erase several wins.
§ 03
Look at a stock that has been range-bound for 3+ months. Price an iron condor with short strikes at the 16-delta level (~1 standard deviation). This targets ~68% probability of profit.
§ 04
Your iron condor has a 70% probability of profit. You’ll collect $200 if it works and lose $500 if it doesn’t. Is this positive expected value?
§ 05
§ 06
Iron condor: sell $95 put + buy $90 put + sell $105 call + buy $110 call. Stock at $100. Max profit if stock stays in $95-105 range. Max loss?
Five questions · AI feedback
Sit with the ideas.
You sell an iron condor: short $95 put, long $90 put, short $105 call, long $110 call. You collect $2.50 total premium. What is the maximum loss and the breakeven range?
Why: