would you ever do an iron condor that was OTM?

[IronFist]

 

[guru]

Yes

 

[stepandfetchit]

Curious why your image does not represent your question? An OTM IC would have OTM legs. Your PUT legs are ITM!

 

[IronFist]

Curious why your image does not represent your question? An OTM IC would have OTM legs. Your PUT legs are ITM!

For some reason my presumtion was profitable > ITM. The question stands based on the picture.

 

[IronFist]

Let me rephrase, would you ever open an iron condor such that price has to move very far and specifically to one area for it to be profitable?

 

[kcgoogler]

why not? if for whatever reason your forecast is for price to settle in that range above.. an ic up there could be the best risk-reward structure.

 

[JSOP]

What's the point of doing an iron condor ITM?

 

[eaglefeather]

I use like strategies to leg into long stock planning to take delivery by either the long calls or short puts, but I delta hedge the call side with an odd lot. Seldom do I use an option spread planning to just close it without there being an exercise involved anymore.

 

[MrMuppet]

makes no sense to me. unless you have very acurate predictions that price will land in between short strikes, this structure is a waste of commissions