Best Iron Condor Strategy For Nifty

Best iron condor strategy for income investors.
Best iron condor strategy for nifty. There s a couple different setups and variations that you can do because the flexibility of. When to book profit or loss this is a complete range bound movement based strategy. An iron condor is profitable when a stock moves as little as possible in the price this gives us the most important criteria when considering. Even though they make up an iron condor straddles offer a very different trade than.
Well if you want to know the winning percentage its close to 70. Iron condors is my favorite strategy to trade nifty options month after month. The iron condor option trading strategy takes advantage of the low market volatility with limited risk involved you have the probability of winning a nice profit. As a directionally neutral strategy iron condor trading does not require you to forecast the market direction.
Buy 19700 put option. A well crafted iron condor strategy represents not only a conservative income producing version of credit spread income investing it is a credit spread technique that is operating on steroids in the monthly income production department. This strategy is designed to take maximum advantage of time decay therefore it is good to take a position in a month ahead expiry. The other way to place an iron condor involves trading two spreads.
Iron condor setups can get a little more complicated than just a primary iron condor flat normal balanced position. So that you can see the different variations and the ways that you can set up iron condors. We re going to take a look at four iron condor setups. Iron condor is a non directional o.
Short 19800 put option. Picking the best stocks for iron condors not all stocks are created equal when executing an iron condor and a key part of being profitable is avoiding the wrong types of stocks in the first place. But what s more important is how to handle the 30 losses. What is an iron condor strategy.
Iron condors are made up of either a long strangle and short strangle or a bull put spread and bear call spread. I have been trying this strategy the last few months but i m not a fan at all and here is why. Is iron condor a profitable option trading strategy. Generally the sweet spot for iron condors is anywhere between 40 and 60 days to expiry.
So time and time again the general rule when doing iron condors is to do 30 45 dte and close out at 50 of max profit. What is an iron condor strategy. You don t want to trade the iron condor as a long straddle and short straddle. There are many option trading strategies with defined risk one such option selling strategy with proper hedge is iron condor.
Here s an example consider bank nifty trading at 20000 levels currently to create iron condor strategy the following trades needs to be executed.