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Options playbook

Sideways spread - Iron Condors

By Ivan Tchourilov

The Iron Condor is the ultimate professional's trading strategy. It is extremely lucrative if the market doesn't move much and you find good risk/reward ratios. But what is the strategy and when would you use it?

Iron condors form a major part of our trading systems and we see this as the ultimate neutral trading strategy for when you expect volatility to drop and prices to consolidate around a certain price range.

In this video, we will simply introduce how to trade an Iron Condor and when the ideal conditions are present to enter into an Iron Condor, which serves as the basis for a lot of later videos in this course.

After watching this video, you should have a basic understanding of how you construct an Iron Condor, when you would be more likely to enter into an Iron Condor and what needs to happen to achieve the maximum profit.

Video Contents

  • What is an Iron Condor?
  • When do you make money with an Iron Condor?
  • The setup of an Iron Condor
  • Ideal scenarios for an Iron Condor entry
  • How to set up an Iron Condor with the Implied Volatility trading platform?
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