#Iron condor options software#

It is possible that given the option positions in the account, the iron condor you are trying to create will not be recognized as such. The strategy got its name because the graph reflecting the various profit and loss points looks like a large bird, like a condor. All in all, it revolves around four options, each with the same date of expiration. However, due to the system requirements required to determine the optimal solution, we cannot always guarantee the optimal combination in all cases. An iron condor is a directionally neutral, defined risk strategy that profits from the underlying trading in a range, through the expiration of the options. An iron condor is an options trading strategy consisting of selling an out-of-the-money call spread and an out-of-the-money put spread, all with the same expiration date and width between strike prices. The iron condor option strategy involves the use of call and put options. The same day is the expiration date for each choice. In the case of a volatile market or extreme movements, the strategy will incur a loss.

#Iron condor options software#

*Please note that Interactive Brokers utilizes option margin optimization software to try to create the minimum margin requirement. What is Short Iron Condor Options Strategy A short iron condor spread is a four-part trading strategy that consists of a bear call spread, and a bull put spread where the short put’s strike price is lower than the short call’s strike price. The Iron Condor is only applicable when the market is Non-Volatile. If the distance between the puts and calls is different the position will be margined as two separate spreads with two separate margin requirements.

In order for an iron condor to be recognized under exchange rules, the options must all be on the same underlying instrument and have the same expiration date, have different strike prices and the strike distance between the puts and the calls must be equal.

Take the difference and multiply by the number of contracts (10) and the multiplier (100) The iron condor is a market-neutral strategy, meaning that it earns a profit when the market trades in a relatively narrow range. The margin requirement is determined by taking the strike of the short put (170) and subtracting the strike of the long put (160)