Learn With ETMarkets – Options Demystified 506 – Iron Condor

Learn With ETMarkets – Options Demystified 506 – Iron Condor

In our previous discussion, Maya delved into option strategies, explaining Tara the concepts of Strangles and Short Strangles. She also pointed out a significant drawback of short strangles, where a trader is exposed to unlimited risk, and a substantial directional market move can seriously dent their trading capital. To address this concern, Maya suggested two … Read more

Learn With ETMarkets: Options Demystified 504 – Iron Fly and Short Straddle

Learn With ETMarkets: Options Demystified 504 – Iron Fly and Short Straddle

Continuing from the previous discussion on Straddles: Profiting from Uncertainty Iron Fly: Capped ProfitsTara further asked, “If premiums are high due to implied volatility, what can we do?” Maya explained, “In high premium situations, you can use the concept of spreads and sell an out-of-the-money (OTM) option for both the call and put to offset … Read more