The short iron condor is a very popular options trading strategy because it has a wide range of profitability and limited loss potential.
However, one big downside of selling iron condors is that the loss potential is typically going to be much higher than the profit potential, which means controlling losses is the key to successfully trading iron condors long-term.
In this video, I demonstrate an iron condor adjustment strategy for trades that have been violated by a notable change in the stock price.
The adjustment strategy I teach in this video will reduce the maximum loss potential, increase the maximum profit potential, neutralize the position’s delta, but decrease the probability of profit.
I use the OptionNET Explorer options analysis software to visualize simulate historical trade examples in AAPL, and demonstrate how the iron condor adjustment strategy changes the position’s profile.
If you have questions related to this video, please leave them in the comments section below!
=== LINKS / RESOURCES ===
Iron Condors Explained for Beginners: https://www.projectfinance.com/iron-condors-spread/
OptionNET Explorer Trade Analysis Software: https://www.optionnetexplorer.com
Buy a Trial of OptionNET Explorer (w/ Discount): https://www.optionnetexplorer.com/PaymentONEREFA_Trial_ewqp4gui4938a435d2c9e6d1cb18utk0.aspx?id=projectoption
➥ Get a $200 free stock bonus when you open a tastyworks account: https://bit.ly/37Vc8Py
➥ Learn More About tastyworks & Their Trader-Friendly Fees: https://tastyworks.com/pricing/
=== RECOMMENDED VIDEOS ===
Stock Options Trading 101: https://youtu.be/3bELT5FZCic
Short Iron Butterfly Strategy: https://youtu.be/7CBW_Oidsd0
Iron Condors Explained: https://youtu.be/6UOk_78nVio
Implied Volatility Explained: https://youtu.be/H-NHZq-skFo
Why Early Exercise/Assignment is Rare: https://youtu.be/7pTb1a5IgKM
Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo