![]() ![]() ![]() Best Iron Condor Settings in the Options Scanner Roll the expiration of Put Spread to wait for the stock price to rise. So we can wait for PLTR's stock price to bounce back and profit from the decay of time value. It would result in a Put Spread with a longer expiration, letting us offset the loss with the time value of the new trade. Sell to open a Put Spread that expires later.If we remain bullish about PLTR, that the stock price will increase past the Put strike, we can roll the Put Spread forward to a later expiration: We can buy to close the Call Spread to collect our profits. The Call Spread is already very profitable by the time the options are near expiration. If the stock price remains low at less than 14 days to expiration, we can turn the Iron Condor into a Put Spread and consider rolling it to a later date. Roll Forward Put Vertical Spread Just Before Expiration Roll down to create a narrower Iron Condor. Roll down the Call Spread to collect our profit, and sell to open another Call Spread at a lower strike price.Īfter rolling down, we have an Iron Condor with a smaller profitable width, allowing us to continue to benefit from theta decay. Sell to open another Call Spread that expires at the same time at a lower strike price.We can roll down the Call Spread to collect our profit: Put Spread loses because of an increase in delta. Call Spread becomes profitable due to a lower delta. While the Put Spread on the other side loses because of an increase in delta. If the Palantir stock price goes down, our Call Spread becomes profitable due to a lower delta. If the stock price goes down before the Iron Condor expires, we can roll down the profitable Call Spread to pocket the profit. Roll Down Call Vertical Spread After the Stock Price Goes Down Roll the expiration of Call Spread to wait for the stock price to fall. So we can wait for PLTR's stock price to fall back within our expectations and profit from the decay of time value. It would result in a Call Spread with a longer expiration, letting us compensate the loss with the time value of the new trade. Sell to open a Call Spread that expires later.If we have a bearish outlook for PLTR, that the stock price will drop below the Call strike, we can roll the Call Spread forward to a later expiration: We can buy to close the Put Spread to collect our profits. The Put Spread is already very profitable by the time the options are near expiration. If the stock price remains high at less than 14 days to expiration, we can turn the Iron Condor into a Call Spread and consider rolling it to a later date. Roll Forward Call Vertical Spread Just Before Expiration Roll up to create a narrower Iron Condor. Roll up the Put Spread to collect some profit, then sell to open another Put Spread at a higher strike price.Īfter rolling up, we create an Iron Condor with a smaller profitable width, allowing us to continue to benefit from theta decay. Sell to open another Put Spread that expires at the same time at a higher strike price.We can roll up the Put Spread to collect some profit first: While the Call Spread on the other side loses because of an increase in delta. In the PLTR example, when the Palantir stock price goes up, our Put Spread becomes profitable due to a lower delta. Call Spread loses because of an increase in delta. Put Spread becomes profitable due to a lower delta. If the stock price goes up before the Iron Condor expires, we can roll up the profitable Put Spread to pocket the profit. Roll Up Put Vertical Spread After the Stock Price Goes Up We can see a 0.20 delta PLTR Iron Condor that expires next month has a 63% probability of profit, and has the highest return on capital of around 32%. An Iron Condor is a neutral options strategy that combines a Bull Put Spread and a Bear Call Spread. The Bear Call Spread defines the upper bound of the price movement.Īs long as the stock price stays between the strike prices of the short Put and short Call, the four legs of Iron Condor will expire worthless, resulting in profit for the options seller. The Bull Put Spread defines the lower boundary of the stock price. The trade is profitable when the stock price doesn't vary very much. Best Iron Condor Settings in the Options ScannerĪn Iron Condor is an options strategy that combines a Bull Put Vertical Spread and a Bear Call Vertical Spread. ![]() Roll Forward Put Vertical Spread Just Before Expiration.Roll Down Call Vertical Spread After the Stock Price Goes Down.Roll Forward Call Vertical Spread Just Before Expiration.Roll Up Put Vertical Spread After the Stock Price Goes Up. ![]()
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