The Best 10 Option Trading Strategies

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7. Condor

Condor strategy has four combinations. Two of them are for the stationary market and the other two are for the dynamic (volatile) market. Long call and put condor are for the stationary market whereas short call and put condor are for the dynamic market. The former strategy involves four steps that are buying and selling in the money and out of the money call option with an equivalent amount of contract.
With this strategy, profit can be generated as long as the security price does not fluctuate out from the upside and downside breakeven level. Short call and put condor are for a dynamic market, which also involves four steps like the long call and put condor strategy. The difference is that in short call and put condor, the strike prices of the options that have been bought must be within the strike prices of the options that have been sold. For a short call and put condor strategy, profit can be generated as long as the security price has fluctuated out of the upside and downside breakeven level.
The upside breakeven level is calculated by adding the whole position total payout or receive to the highest strike price in the strategy. The downside breakeven level is calculated by subtracting the whole position’s total pay or receive to the lowest strike price in the strategy.

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