05 for the 70/50 bull put spread and receive. This strategy has both limited profit and limited risk potential.įor the example above, you receive. Max risk is realized if the underlying settles below the lower long put or above the upper long call. This position results in a net credit and max profit is realized if the underlying stock settles at or between the two short inside strikes at expiration. A short iron condor is a multiple leg position that combines a bull put credit spread (buy a put and sell a higher strike put) and a bear call credit spread (sell a call and buy a higher strike call) where all strikes are equal distance and have the same expiration.
0 Comments
Leave a Reply. |