Following trade is for educational purposes only. An Iron Condor is an option strategy, where the expected outcome for next week is range-bound.
A CE option mentioned below is a European Call Option, while a PE option is a European Put.
A hedger always buys these options and a speculator mostly sells one.
But when the speculator only sells these options, the risk involved is unlimited and the margin requirement is also high. This is called naked option selling. When both CE and PE are sold, it is called a short straddle.
In combination with this, if we buy much farther CE and PE, the short straddle becomes an Iron condor. Here, the idea is to capture the option premium in a range-bound market with reduced risk and margin compared to short straddle.
The spread between buy and call leg is based on optimum use of margin. Since the option premium is credited to us in advance, it is also a credit spread.
Since this week the view is bearish, we are taking only the CE leg of Iron Condor. As the week progresses, additional trade may be added.
Please leave a comment if you need further clarification on the following trade
My concept of trading is not to be an overnight millionaire, but a disciplined method to grow the wealth that you own. Please leave a like if you like the trade ideas :)
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Intraday range is expected to be 34500-35000 So, wishing all another happy expiry :)
The sheet is not automated, 0 is my final expected value of the option contract, i. e., expectation is, it will end up as OTM and expire worthless.
Suppose i exited the contract mid week, I will update it mid week, and the exit value is recorded in the place of zero.
It can be observed in my previous trades, in the same sheet, whenever I exited before expiry.
lonelyLeopard19965
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Hi Bro,
It's good that u r sharing ur views with others. I appriciate u.
Bt i looked at this message after posting of 2 hrs, at that time 36300 ce premium fell from 80 to 49 where as 36900 ce premium fell from 33 to 20 but in the spreadsheet u have already made them as 0 n updated the profit percentage.
What are u trying to prove?(I mean whats ur thought process here)
It is hectic to update sheet with LTP every day, so I have entered the final expected exit value
lonelyLeopard19965
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@muhd_nihal, Got ur point bro, y cant u opne a telegram channel n explain ur ideology behind every step. Because it helps beginner like me a lot n we get timely notifications n all.
I have gone through all of ur calls. Its simply awesome n half. The way u start the position, the way u adjust them n the way u close them (n good logic is there behind ur techinal analysis also n of course u r mentioning that in each n every update) are simply superb.
My request is, chart telegram channel n youtube channel ASAP.
Thanks in advance bro. (n pls take care of urself).
0 is my final expected value of the option contract, i. e., expectation is, it will end up as OTM and expire worthless.
Suppose i exited the contract mid week, I will update it mid week, and the exit value is recorded in the place of zero.
It can be observed in my previous trades, in the same sheet, whenever I exited before expiry.