When we are looking to place an Iron Condor in order to take advantage of a high Implied Volatility Rank, we have a couple different choices. If we are looking to reduce the risk to one side of a trade in order to take our market assumptions into account, we can move one side closer to the money and/or take on additional risk by buying a long strike that is further away.
Today, Tom Sosnoff and Tony Battista look to take advantage of both methods to reduce risk on one side of a trade. The guys will place a skewed and unbalanced Iron Condor in FXE. Since FXE has been beaten up recently, they will place the short put closer to the money and look to buy a wider put spread (4pts compared to 2pts on the call side). This allows them to bring in additional credit and reduce to the risk to the call side, playing for a bounce in FXE!