Iron Condor not adding up.. help!

[stepseazy]

Quote from stoic:

There is the Short Iron Condor
&
The Long Iron Condor

Plus:
Long Condor Call Spread
Short Condor Call Spread
Long Condor Put Spread
Short Condor Put Spread.

All have there time and place based on ones expectations for the underlying, risk & reward.

but wait, I realize there is a small difference (why Im not sure) but for the most part arent the put and call and iron condors equivalient? as far as risk reward

 

[MTE]

Quote from stepseazy:

but wait, I realize there is a small difference (why Im not sure) but for the most part arent the put and call and iron condors equivalient? as far as risk reward

Yes, all 3 condors (iron, call and put) are synthetic equivalents when done at the same strikes, so they are usually pretty much in line with each other. Small discrepancies may come from slightly wider/narrower bid-ask spread in one of the options and stuff like that.

 

[gobar]

can i place iron condor or other complex options order in IB account with 10 k? is it possible or one requires 25 K?

ty

 

[MTE]

Quote from gobar:

can i place iron condor or other complex options order in IB account with 10 k? is it possible or one requires 25 K?

ty

I don't use IB, but in general you should be able to. 25K is for day-trading, which is a separate issue.

 

[stoic]

Quote from stepseazy:

but wait, I realize there is a small difference (why Im not sure) but for the most part arent the put and call and iron condors equivalient? as far as risk reward

No.

For one the Short IC is more a neutral strategy.

The Long IC expect volatility.

One is for a credit and one for debit. the break even points my be the same but the capital requirements, maximum profit, and % return are not.

See atached.

 

[stoic]

Quote from stoic:

No.

For one the Short IC is more a neutral strategy.

The Long IC expect volatility.

One is for a credit and one for debit. the break even points my be the same but the capital requirements, maximum profit, and % return are not.

See atached.

Here is the atached.

 

[stepseazy]

Of course a long condor is the opposite of a short condor. I get that. my point is it doesn't matter if you use calls or puts or both to construct the condor. In my experience, there is usally a difference in price for calls or puts. Never quite got a detailed answer on the details of that. Should be put-call parity. Of course, an iron condor you don't have to close any of the options at the end so people prob prefer that. Or maybe you got some other wierd roll strategy.

 

[stepseazy]

btw I think a butterfly is a better trade if you plan on taking it off before expiration.

 

[stoic]

Quote from stepseazy:

Of course, an iron condor you don't have to close any of the options at the end so people prob prefer that. Or maybe you got some other wierd roll strategy.

The short Iron condor would be best if all option expire wortless.

The long Iron condor would be best if one side is fully ITM and should be closed out.

NOTHING wierd about that!

 

[stepseazy]

no, its the opposite. your info paper is wrong. The long condor makes money in the middle and the short makes money if you have to cover.