What Are Iron Condors?
A closer look at Iron Condors
Team Sang Lucci & Wall St. Jesus avatar
Written by Team Sang Lucci & Wall St. Jesus
Updated over a week ago

An Iron Condor is an options strategy used primarily for a stock stuck in a certain price range.

The basic strategy consists of a simultaneous call credit spread and a put credit spread:

Put Credit Spread

  1. Sell one (1) out-of-the-money put option

  2. Buy one (1) out-of-the-money put option (Lower Strike than the sold)

Call Credit Spread

  1. Sell one (1) out of the money call option.

  2. Buy one (1) out-of-the-money call option (Higher Strike than the sold)

Traders can select call/put strikes based on levels of support/resistance established from the stock’s price levels. Each week, Ron records a video with a few names he considers candidates for applying the Iron Condor to sell premium. He will also point out the levels of support and resistance he identified, plus add his rough trade plan for any potential adjustments to the trade.

The Trading, the Post community, utilizes the Iron Condor strategy to collect premium every week, aka “Condor BBQ.”

Questions or suggestions?

Please reach out if you have any further questions or suggestions.

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