Strategies for IRA

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How to Profit From Iron Condors

Strategies for IRA

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Though IRA traders may have a limited group of strategies at their disposal, the Iron Condor is still a strategy that is IRA-compatible and widely used by traders because of its historical profitability. However, many tend to think of the Iron Condor as a zero-sum game do to its 50/50 theoretical proposition and tendency to have a larger risk relative to the credit generated. Tom and Tony dispel those rumors in this segment by going through how we make this strategy profitable.

We take the short Iron Condor from a losing expected outcome at start to a profitable one by first looking to manage profits in this trade at 50%. We also understand that the Iron Condor is a defined-risk strategy and thus has a maximum loss amount, but this maximum loss amount has been rarely seen historically. Finally, looking for high Implied Volatility Rank before initiating the position grants us an even greater edge in the way of a larger credit and wider breakevens. The segment above highlights all this and more! Take a look for further details.

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