With SPY trading at 416, the breakeven levels are 433.22 or 373.78. If an iron condor strategy exists in the account, the margin requirement will be the short put strike - the long put strike. This happens to be the primary weakness of our other futures algorithms. By selling the 432/437 bear call spread and the 374/369 bull put spread simultaneously thereby forming an iron condor you can make 1.22, or 32.3, over the next 43 days. In our example, they are at 47.26 and 57. It is possible that given the option positions in the account, the iron condor you are trying to create will not be recognized as such. Iron Condor trades typically do well in sideways moving markets. Iron condors typically have two break-even points, one between the two put strikes and another between the two call strikes. However, due to the system requirements required to determine the optimal solution, we cannot always guarantee the optimal combination in all cases. *Please note that Interactive Brokers utilizes option margin optimization software to try to create the minimum margin requirement. The index iron condor options strategy is popular because its relatively easy to understand, it doesnt require options analysis software to visualize the. If the distance between the puts and calls is different the position will be margined as two separate spreads with two separate margin requirements. 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. In order for an iron condor to be recognized under exchange rules, the options must all be on the same underlying instrument and have the same expiration date, have different strike prices and the strike distance between the puts and the calls must be equal. The iron condor is an options trading strategy utilizing two vertical spreads a put spread and a call spread with the same expiration and four different strikes. Take the difference and multiply by the number of contracts (10) and the multiplier (100) The margin requirement is determined by taking the strike of the short put (170) and subtracting the strike of the long put (160)
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |