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What is the net credit spread for iron condors?

The net credit for the call credit spread is $2 - $1 = $1. Next, you build the other half of the iron condor, the put credit spread. Let’s say you sell a put option with a strike price of $90 and receiving a premium of $2. You also buy a put option with a strike price of $80, paying $1.

What is the difference between a call spread and an iron condor?

A call or put spread involves buying and selling options that are in the same class (call or put) and expire on the same day but have different strike prices. An iron condor involves selling two credit spreads, which make up the two “wings” of the bird: A call spread means you buy one call option and simultaneously sell another call option.

What is the sweet spot for an iron condor spread?

You want the stock price to end up somewhere between strike B and strike C at expiration. An iron condor spread has a wider sweet spot than an iron butterfly. But (as always) there’s a tradeoff. In this case, your potential profit is lower. One advantage of this strategy is that you want all of the options to expire worthless.

Is an iron condor spread better than an Iron Butterfly?

An iron condor spread has a wider sweet spot than an iron butterfly. But (as always) there’s a tradeoff. In this case, your potential profit is lower. One advantage of this strategy is that you want all of the options to expire worthless. If that happens, you won’t have to pay any commissions to get out of your position.

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