What is an Iron COndor?
June 22nd, 2008 by tad
I came across an investment term that I had never heard before and decided to look it up and find out exactly what it was. Then I felt I should share this information with my readers. If you are in the investment world you have probably heard of this term before so excuse my lack of knowledge on this one. The term is an iron condor. And here is what it means, Iron condors are four-option spreads that combine both calls and puts. It is an advanced options strategy that involves buying and holding four different options with different strike prices. There is of course more to the definition than that in wikipedia but for now that will give all you investor wannabe’s out there a new term to use around the office.
This entry was posted on Sunday, June 22nd, 2008 at 7:00 pm and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
July 16th, 2008 at 9:21 am
Glad to see you want to educate your readers about iron condors.
For clarification: The iron condor does consist of four different options, but you buy two of them (one call and one put) and sell the other two (one call and one put). All four options expire on the same day.
For a clear explanation about iron condors and the decisions that should me made prior to initiating the trade, take a look at my blog:
http://www.mdwoptions.com/options_for_rookies/
Choose category: Strategy: Iron Condor