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How to Trade and Understand Iron Condors on ThinkorSwim

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  • Опубликовано: 15 авг 2024
  • In today’s video we’ll learn how to trade iron condors on the ThinkorSwim platform. We’ll also dive into the basics of the iron condor spread itself, why you may want to use it and what to look for before you place the trade.
    Timestamps
    0:00 Intro
    0:18 The Basics
    2:28 What to Look For
    5:57 How to Place the Trade
    9:04 Analyze the Trade
    12:46 How to Manage the Trade
    It's important to remember that Iron Condors are neutral trades. Since they are not directional, they do not benefit from the stock moving one way of the other. They instead benefit from time decay and volatility decreasing. As time passes the options will slowly decay making you money over the duration of the trade. A volatility decrease will also cause the options to decrease in value, benefiting you.
    To create an iron condor you simply need to build out a short vertical put spread while also building a short vertical call spread. Time decay starts to ramp up around 30-60 days out which is why many options sellers will stick to this time frame. Occasionally, trading shorter time durations around earnings announcements to capitalize on volatility crush.
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Комментарии • 50

  • @shortthestrike
    @shortthestrike  2 года назад +1

    What strategy video would you like next?

    • @timbomcjimbo
      @timbomcjimbo 2 года назад

      Do you ever buy options or only sell?

    • @chadt103
      @chadt103 2 года назад

      What would you consider to be your favorite strategy? I have been taking an options class for 6 months now. The class is very good but we just do the basics, ( Calls, Puts, & Verticals ) I have been researching many other options. This is the first video where I felt like I had the knowledge and understood the Strategy well enough to give it a shot. Thanks so much

    • @AsifHasham
      @AsifHasham 2 года назад +1

      Wheel Strategy for Income.

    • @AP_123_
      @AP_123_ Год назад

      @@AsifHasham I second @shortthestrike

    • @markwelti11
      @markwelti11 21 день назад

      Great job teaching the Iron Condor. It seems to be a very popular strategy. One thing that I didn't see in this video was how to close it out or unwind it with a profit, near or at your 50% profit point? Like you said I would not want to tie my investment up for this long.

  • @pjd7591
    @pjd7591 6 месяцев назад +1

    I learned more on this video than I did with the TOS techs. Great job.

  • @NMranchhand
    @NMranchhand Год назад +2

    THAT was an excellent video, and just what I needed. My options fundamentals are good but I just wasn’t getting in tune with TorS for some reason though I was really trying. But your explanation, focused on the A-to-Z of one type of strategy made it seem very easy. I subscribed and can’t wait to see the rest of your videos. I know there is a lot of static noise in this area, but your teaching ability really deserves higher numbers.

  • @avieda
    @avieda 2 месяца назад

    this is excellent thank you. !!

  • @jhafer80214
    @jhafer80214 2 года назад +1

    Comprehensive and well paced. Good job!

  • @ocninjatrader8993
    @ocninjatrader8993 2 месяца назад

    Great job on explaining Iron Condor.🥰

  • @tonysantaniello9352
    @tonysantaniello9352 2 месяца назад

    Excellent!!

  • @Rafi-Tzur
    @Rafi-Tzur Год назад

    You explain/demonstrate great. I learn a lot from you... thanks man

  • @AP_123_
    @AP_123_ Год назад

    More explanation videos like this, please. For each Options strategy, and spreads.

  • @petecoffee7802
    @petecoffee7802 2 года назад

    Outstanding work. Your videos are now my go to. I’m going to binge watch your TOS option videos this weekend 🍿

  • @noh9studio
    @noh9studio Год назад

    Thank you for putting this together. It helped a lot, thanks for the tips.

  • @sandeepnij
    @sandeepnij 6 месяцев назад

    Great video. It would be nice if you also talked about placing stop and limit orders on the Iron Condor.

  • @Hollywuud25
    @Hollywuud25 2 года назад

    Excellent explanation! Covered allot in a small amount of time.

  • @johnnyrobinson8168
    @johnnyrobinson8168 8 месяцев назад

    Thanks for sharing! Truly enjoyed! ❤

  • @commonwealth6
    @commonwealth6 2 года назад +1

    Hi,
    What delta should I keep to choose strike price for all 4 legs.

  • @chulchue2619
    @chulchue2619 2 месяца назад

    In your example, how much cash would you have to have in your account to cover the number of options that you purchased did you buy 100 which gave you the profit? How many did you buy?

  • @kevinsenquiz902
    @kevinsenquiz902 11 месяцев назад

    Amazing video 🤙🏽

  • @qtube173
    @qtube173 Год назад

    this was a very very good video... paper trading is saving me from real life nightmares lol

  • @chrismnutone8421
    @chrismnutone8421 2 года назад

    Great explanation, thank you!

  • @freddurst4420
    @freddurst4420 2 года назад +1

    @2:42 why you not getting credit for selling the put ?? confused.

  • @willberger96
    @willberger96 2 года назад

    Great video! Thanks!

  • @harbor2884
    @harbor2884 Год назад

    Please show me how to put stop limit on iron condor. Thx

  • @Lump_Sum
    @Lump_Sum 5 месяцев назад

    I’m alittle confused.. if you want the stock to stay put why choose one with high volatility? Cheaper options prices?

  • @Lolablue1986
    @Lolablue1986 Год назад +1

    How do you close out a Iron condor once you are ready?

  • @efrumento
    @efrumento 2 года назад

    Excellent explanation! Regarding multi-leg strategies in general, I learnt it is possible to close positions exiting one leg at a time if you face an illiquid context. Am I right? If so, which would be the preferable order to close each leg? I suppose we should close short legs first just in case of sudden assignment, isn´t it? Your feedback will be highly appreciated.

  • @Vanoroc
    @Vanoroc Год назад

    very interesting!

  • @dano94
    @dano94 Год назад

    Great video! I had a question when the options expire, does TD close out your positions or do you have to do it on the last day of expiration?

  • @chadt103
    @chadt103 2 года назад

    Thank you. I just tried to put one on. Question do you normally try to get a 1 to 1 risk to reward? Question even with high Open Inst. do these take awhile to get filled? I tried one in my paper account to see how it worked but it did not get filled.

  • @johnlamb4465
    @johnlamb4465 Год назад

    please show me how to close the position

  • @Stealthy_Sloth
    @Stealthy_Sloth Год назад

    How do you exit the Iron condor at 75% profit? I'm a beginner and I'm nervous about this.

  • @dariusstefanliciu1610
    @dariusstefanliciu1610 Месяц назад

    Bro if you have high IV that means the stock might move in a direction making you lose money with the condor.

  • @gerh8833
    @gerh8833 2 года назад

    Well explained video. How do you manage the call or put option it it falls between your short and long legs? Do you take on the assignment?

    • @shortthestrike
      @shortthestrike  2 года назад

      I’ll just close the spread for whatever it’s worth at expiration. I’m generally trying to avoid any assignments as much as possible

  • @freddurst4420
    @freddurst4420 2 года назад

    key thing; at the end you just said you get out at 75%, can you close out the whole condor with one click ? or do you have to go through each option ?

    • @shortthestrike
      @shortthestrike  2 года назад +1

      Nope, you'll generally want to close the entire spread at once. If you're on the monitor page just right click on the stock ticker then close selected, buy iron condor.

  • @gidkidgaming3567
    @gidkidgaming3567 Год назад

    What brokerage are you using in this video?

  • @laodrofotic7713
    @laodrofotic7713 4 месяца назад

    why no one actually teaches how to fucking close this things? You are highly regarded for sure.

  • @brianmay9847
    @brianmay9847 2 года назад

    Could you show delta hedging for an IC?

    • @shortthestrike
      @shortthestrike  2 года назад

      Absolutely! I’m making a few study overviews first, but I can definitely cover that. Are you mainly interested in seeing how to visually see it on the risk/profile page and utilize various trades to adjust the delta to net neutral?

  • @moonx1949
    @moonx1949 Год назад

    YOU DID NOT SHOW HOW TO CLOSE THE IRON CONDOR EXAMPLE ............VERY UPSETTING!

  • @michaelg8607
    @michaelg8607 Месяц назад

    TOO MANY ADS!!!!!!!!