This Trade Can Make Money Whether A Stock Goes Up Or Down

| May 12, 2022

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One of my favorite trading strategies—and one that big-time money managers and volatility traders use—is trading an iron condor.

An iron condor is selling a downside put spread and an upside call spread at the same time. In this scenario, you cap your risk because you have a spread with a defined loss.

At the outset, the iron condor strategy is a market-neutral trade. You are not making a prediction on which way the market is headed. Rather, you are making a bet that the market will not have a large move in either direction before the expiration date of the options that we are selling.

How Do You Place This Trade?

This post originally appeared at Investors Alley.

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Category: Options Trading Strategy

About the Author ()

Adrian Collins works as an Outreach Manager at Option Dash. Option Dash is always looking forward to offering the best covered call and cash secured put screener on the internet. Adrian is passionate about spreading knowledge on stock and options trading for the rising investors.