RED Option Iron Condor:

The Iron Condor is the elemental market-neutral strategy that has positive time decay and negative gamma with limited risk. Traders with any level of option trading experience can use this advisory. The recommendations are complex, multi-legged spreads but they can be facilitated in any size account.

An Iron Condor is a single, complex option spread. It is the simultaneous sale of an out-of-the money call vertical and an out-of-the-money put vertical in the same month, in the same underlying.

This advisory was designed to profit when a stock or ETF remains in a reasonably narrow trading range during the current expiration cycle. This advisory will make non-directional, defined-risk credit spreads, employing both index and equity options.

Our Chief Strategist will select trades that meet both our risk criteria and our expectations of achieving price targets. Our risk 'rules' require that we find trades where the credit received increases the probability of success while offering sufficiently wide break-even levels. We suggest this strategy for any size account seeking a near-term position with defined risk, short premium and positive theta characteristics.

We created this advisory to offer RED Option clients the ability to achieve an approximately 1:1 risk/reward ratio with a statistical advantage because of a greater than 50% probability of success. Auto-trade clients are likely to receive a more aggressive trade price due to large order, negotiated pricing with various liquidity providers.

Example of an Iron Condor: