Build an Inverse Iron Condor Strategy
What is a inverse iron condor?
DirectionalLimited ProfitLimited Loss
The opposite of a iron condor, and similar to a short iron butterfly, but with a wider unprofitable range and better potential profit.
If volatility increases, the profitable range and chance of profit will increase as well. Time is harmful when the position is unprofitable, but helpful once it becomes profitable.
(also known as: Long Iron Condor)
- Sell a put at strike A
- Buy a put at strike B
- Buy a call at strike C
- Sell a call at strike D