Explanation Reverse iron condors are market neutral strategy with no directional bias. For this strategy to breakeven it would require very volatile move in the underlying. Initially, the execution of the strategy involves funds outflow aka net debit and the risk is limited to the amount paid. The strategy can be build at any distance […]

Explanation Iron butterfly option strategy is initiated by an operator when he expects underlying to stay in range with low volatility from the underlying. The strategy is implemented for a credit. The width of the winds in butterfly spread or in other word the spread from the short strike defines the maximum risk for the […]

Explanation: Iron Condors are essentially just a hedged short strangle which profits from low movement and low volatility. It is market neutral and has no directional bias. Since we indirectly talking of strangle, the trader need to sell strikes at any distance from the underlying current price and the spread between the short and long […]

Explanation Taking base assumption on implementing this strategy is of little/no volatility, the trader capitalizes on the limited profit that is in the form of premium received. Ratio put write is a neutral options trading strategy. The options strategy is constructed with ownership of the underlying security or going long on future contract and simultaneously […]

Explanation Put ratio spread is a multi-leg, neutral strategy with undefined risk and limited profit potential that involves buying in-the-money put options and selling more out-of-the-money put options of the same underlying and expiry but at a different strike price. If the strategy is initiated for a credit, the trader can earn in two ways: […]