Iron Condor Archives - CBOE Blogs

  • Trader Talk | Education | Strategy | May 6, 2015, 2:50 PM

    How to Find Stocks for Iron Condors?

    How to Find Stocks for Iron Condors?

    I am often asked how I find stock in which to enter into the Iron Condor strategy.  Not every strategy works with every stock in every kind of market, but I have a set of guidelines or criteria I use when looking for those stocks. #1  use stocks you would buy 100 shares of in your retirement account #2  use very liquid stocks near $100 or higher:   Examples would be AAPL, NFLX, AMZN, GOOGL, PNRA, XOM, DIS, IBM, TSLA, LNKD, PCLN, etc. #3  If I did 4 stock Iron Condors[...]

  • Trader Talk | Education | Strategy | Trade Ideas | Jan 23, 2015, 2:38 PM

    AAPL Earnings Play

    AAPL Earnings Play

    I am looking at an Iron Condor as a potential trade to play AAPL earnings next week. Trade: Sell 1 January 120 Call and Buy 1 January 123 Call. Sell 1 January 104 Put and Buy 1 January 101 Put. This is the January 30 Expiration. The credit I am looking for is around $60 per every one contract Iron Condor I do (excludes commission). Analysis: The credit for this Iron Condor is $60 and the Risk or Margin is $240 per every one contract I do. The yield is about 25% excluding commissions if I collect[...]