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Iron Condors
Analyzing the risk profile of iron condors
Recap
- An Iron Condor is the simultaneous of a against a
- Risk of realizing max loss tends to be higher, so never risk more than you are comfortable losing
- is directly correlated to the risk/reward ratio
- The most you can make on an Iron Condor is the amount you sell it for
- Skewing strikes and delta can allow you to accommodate any market bias
- Iron condors have very few defensive options after the trade has been placed – if a storm comes, be prepared to ride it out as is
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