Best Iron Condor Strategy For Nifty

You don t want to trade the iron condor as a long straddle and short straddle.
Best iron condor strategy for nifty. Generally the sweet spot for iron condors is anywhere between 40 and 60 days to expiry. Even though they make up an iron condor straddles offer a very different trade than. 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. What is an iron condor strategy.
Iron condors is my favorite strategy to trade nifty options month after month. I have an iron condor strategy that might be better than the rest. 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. This strategy is designed to take maximum advantage of time decay therefore it is good to take a position in a month ahead expiry.
Iron condor is a non directional o. As a directionally neutral strategy iron condor trading does not require you to forecast the market direction. 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. 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. What is an iron condor strategy. Best iron condor strategy for income investors. If you are willing to take less profits you can also trade iron condors with 90 winning.
Here s an example consider bank nifty trading at 20000 levels currently to create iron condor strategy the following trades needs to be executed. There are many option trading strategies with defined risk one such option selling strategy with proper hedge is iron condor. But what s more important is how to handle the 30 losses. When to book profit or loss this is a complete range bound movement based strategy.
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. Iron condor is a non directional option strategy but with risk controlled as we hedge the position by buying options. Is iron condor a profitable option trading strategy. There s a couple different setups and variations that you can do because the flexibility of.
We re going to take a look at four iron condor setups. Well if you want to know the winning percentage its close to 70. I have been trying this strategy the last few months but i m not a fan at all and here is why. 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.
Iron condors are made up of either a long strangle and short strangle or a bull put spread and bear call spread.