FREE Support For Months. 1. * That means you need to trade 4 option positions simultaneously to execute this strategy. You can think of this strategy as simultaneously running an out-of-the-money short put spread and an out-of-the-money short call spread. What happens if my view goes for a toss and nifty starts to move in one direction and my real fears come true? Like Our Facebook Page And Get Instant Post Updates For Life. I’m creating an iron condor options strategy in SBIN and keeping a range 240-270 in mind. Maximum gain for the iron condor strategy is equal to the net credit received when entering the trade. Close the losing leg in small loss (in my case the sold call) and let the other leg expire worthless. Here the profit and loss graph of an Iron Condor: You can see in the graph that profit and loss is limited in Iron Condor. The initial rally in the Bank Nifty cooled off in the latter half of the previous trading week. Also, as we shall later see, Long Iron Condor has a similar payoff structure as a Short Call Condor or a Short Put Condor. 2. We think ever trader should run this strategy with proper rules and make money as it’s easy but one of the most powerful strategies. You have to have patience while trading. Mumbai: Traders in the F&O market are being advised to play an iron condor strategy on the Nifty by derivatives analysts at leading brokerages. In the course you will learn how to select the strike prices. ShortPut premium (lower strike) = ₹50. This trade was done in the month of May 2013. Volatility drops or stays in a tight range. What to do after taking a stop loss to recover the lost money. Since 2011 I am trading Nifty options profitably. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. In my case I should close the 6000/6100 leg and sell/buy the 6100/6200 calls. On the other hand, maximum gain under this strategy occurs when the underlying price either falls below the lower strike price or rises above the higher strike price. Iron condors are a combination of a bull put spread and a bear call spread. But the most liquid and most traded segment in India is Index options, if one can build a robust strategy with options, he can easily make consistent returns. Traders eager to punt on the RBI policy Wednesday noon can do through an iron condor strategy on weekly Bank Nifty series expiring on June 7. It tends to bottom out below zero when the underlying price is below the lower strike and peak out above zero when the underlying price is above the higher strike. I am Dilip Shaw. 2. Started trading again from 2011 and never looked back since. Regular Monitoring NOT Required Short Iron Condor. That is why the number of sold options should be equal to the bought options. This is how the results are, considered fixed quantity of 20, with capital 75000, to trade 1 lot of bank nifty futures currently 75k is more than enough. Had doubt, as from October, the trading hours would be extended how would it affect your strategies? After a steep rally in the western markets especially in Dow Jones, profit-booking was due which took place last Thursday. Iron condors are often marketed by advisory services and brokerages as a “high probability” trade. I am almost new to option trading and want to do it passionately . More Resources . The iron condor option also gives you the maximum profit up front. Usually, the lower strike and the lower middle strike Puts are OTM Puts, whereas the higher middle strike and the higher strike Calls are OTM Calls. I have some doubts , after taking your course for 5000/- , It had reached almost 5900 when I put on the trade. Since the sold option has more points, a credit is done to your account. You can see this strategy is giving decent risk: reward ratio and our breakevens are 238 & 267. Depending on profits I should also close my puts and bring them up one position to make more money. Thanks, Now this discussion will get even interesting. You can sell a credit spread on 6000 call by selling 6000 call and buying either 6100 call or 6200 call according to your risk capacity. Iron Condor strategy is one of the most complex nifty options trading strategies India for the beginners. What is an Iron Condor strategy? Email :  info@yournifty.com. As soon as put the trade on 26-Apr-2013 – nifty started to rise – a worst case scenario. Strike price. Thank you Mr. Ramanujam. I am not responsible for any investment decision you take after reading any article in this website. An option trader resorts to this strategy if he believes that the market is going to be rangebound. At this price, all the options expire worthless.The formula for calculating maximum profit is given below: Since I always trade on nifty, henceforth all my examples will be restricted to nifty only. The iron condor has a lot of advantages. To know more Call/SMS/WhatsApp me on 9051143004 or email me now. Before reading please understand that for all 5 strategies, strike selection will be taught. Iron Condor Strategy. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. 4. Nifty started to go down after reaching 6146. I wanted to get some of your thoughts on what strategies to use when hedging risk in an iron condor position. The Iron Condor is an options trading strategy used by many option traders for generating monthly income. Testimonials Year 2017 As a result, this strategy must preferably be initiated by experienced option traders only. That exactly I teach in my course. If its in a range it will be in profit in a few days. Do Course From Your Home I have been trading since 2007, but lost a lot of money till 2010. Sup guys, been watching a bunch of iron condor management vids, no one ever talks about this idea:.2 Delta wide wings. Maximum profit occurs when the underlying price falls below the lower strike or rises above the higher strike, while maximum loss occurs when the underlying price gets stuck inside the two middle strikes. Testimonials Year 2019 You DO NOT NEED to monitor your trades every second. Iron Condor strategy is a range-bound strategy and works well in a sideways movement. Reverse iron condor is created to limit the losses of a long strangle. Once you finish the course you can start trading immediately. Have An Iron Condor Trading Plan. Made for positional calls. Some traders make amazing profits like Rs. Or you can do this adjustment too. This course is good if you have a regular job or business. Set and forget it. Strategy setup - Theta depreciating based Iron Condor in Bank Nifty. Copyright Infringement: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement. You can start trading from any day. In short in credit spreads, one near option is sold and the further OTM option is bought for insurance. 10. max loss - should nifty go beyond any of the strikes sold is - 100. strategy is neither right or wrong...but depends on your view. The details of the strategy are as below: Strike price of OTM short Put = 8800. However the same problem exists here – what if nifty starts heading south? or do we need to follow your tips also . . If you take my course I will tell you exactly how I manage the risk much better than how most traders manage it. INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. 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