Iron Condor Trading Simulator

The iron condor 101 trading simulator aka the iron condor training game is a fantastic way to do this.

Iron condor trading simulator.

The trader sells a put at a 40 strike price and a call at a 50 strike price. You are given repeated trades using historical data and learn how to manage exit and adjust every trade until you get it right every time. The iron condor is a limited risk option trading strategy that is designed to earn a small limited profit. All four options are typically out of the money.

Of an underlying asset. To construct an iron condor a trader would initiate a multi leg options strategy. This page explains iron condor profit or loss at expiration and the calculation of its maximum profit maximum loss break even points and risk reward ratio. An iron condor spread is constructed by selling one call spread and one put spread same expiration day on the same underlying instrument.

Iron condor utilizes two vertical spreads a put spread and a call spread. Typically the stock will be halfway between strike b and strike c. The iron condor is an option trading strategy utilizing two vertical spreads a put spread and a call spread with the same expiration and four different strikes. An iron condor is typically a neutral strategy and profits the most when the underlying asset doesn t move much.

The trader has a low expectation of volatility so it is unlikely that the security will fall below 40 or rise above 50 for the duration of the trade. Take a security that is trading at 45. Iron condor basic characteristics. Maximum risk is limited.

This is the core of the iron condor position. Iron condor is a non directional short volatility strategy with limited risk and limited profit potential it got its name from the shape of its payoff diagram which resembles a condor with wide wingspan. A long iron condor is essentially selling both sides of the underlying instrument by simultaneously shorting the same number of calls and puts then covering each position with the purchase of further out of the money call s and. Iron condor calculator shows projected profit and loss over time.

This could be done by purchasing one january 40 put with a 0 50 premium at a cost of 50 0 50 premium times 100 shares controlled by the one contract. Although the strategy can be constructed with a bullish or bearish bias. A put vertical spread involves buying and selling of equal quantities of puts of same expiration but different strikes.