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Rolling Iron Condor Stock Options for More Return | PowerOptions Web Log
Investors often consider the maximum potential return for an iron condor stock options position to be capped or limited, however, potential returns for iron condors can be increased after initial entry through rolling. An iron condor is a neutral strategy and is a combination of two other popular stock options strategies, the bull-put credit spreads and the bear call credit spreads. An iron condor performs best when the underlying does not move significantly up or down after entry. Sign up now for PowerOptions 14-day free trial A bull-put credit spreads consists of selling an out-of-the-money put option in addition to purchasing a put option at a lower strike price. The bull-put stock options strategy is a neutral to bullish strategy. If the price of the underlying is equal to or greater than the strike price of the short put option at expiration, the position will retain the initial net credit...