The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone, Kirk here again and welcome back to the daily call. On today’s daily call, we’re going to talk about how to setup an iron condor trade. Iron condors are more complex, more advanced option strategies. It’s a more complex with I guess an asterisk because it's really just a couple of more contracts. It’s actually a very simple strategy. But for a beginner, it might be a little bit overwhelming, so I want to talk through the basics of how we set it up and then I would give you some guidance on how you can figure out what strike prices to use, how far to go out, how wide to make you spreads, etcetera. The basics of an iron condor is really this. The whole strategy pins itself on capturing the stock within a range. I think about an iron condor as basically this big net and we’re trying to let the stock move, but still stay within our ranges, our range bound net. We’re trying to capture the stock and catch it inside of a bigger than normal range. To use and start using some numbers to put this into ter