๐ The Jade Iron Condor is a variation of the Jade Lizard strategy, which has no risk to the upside and involves a short put and a bear call spread.
๐ฆ The Jade Iron Condor is a defined risk version of the Jade Lizard, with a put spread on the left-hand side and a bear call spread on the right-hand side.
โ๏ธ The spread in the bear call spread of the Jade Iron Condor is narrower than the put spread, ensuring no risk to the upside.
The Jade Iron Condor is a trading strategy that offers no risk to the upside.
Although there is no upside risk, the short call strike can still be in the money.
It is advisable to close the trade before expiration to avoid potential early assignment.
๐ The Jade Iron Condor is an options strategy with no risk to the upside.
๐ The blue put spread in the Jade Iron Condor has a wider width compared to the call spread.
๐น The Jade Iron Condor has a high win rate of 85.21% due to its wide profit range.
๐ The premium for the put side is typically higher than the premium for the call side in the Jade Iron Condor strategy.
๐ฐ To determine the width of the bear call spread, the total credit received should be greater than or equal to the spread's width.
๐ก The loss on the call side is equal to the spread's width, so the spread should be smaller than the total premium received.
๐ The Iron Condor strategy limits risk to the upside by widening spreads on the right-hand side.
๐ต Widening the spread on the right-hand side allows for more credit and contributes to overall premium.
๐ Increasing the width of the spread can lead to higher premiums but also increases the risk.
โญ The Jade Iron Condor strategy involves choosing between taking on a small amount of risk for more premium or having no risk and a reduced premium.
๐ฐ Ideally, the premium for the call spread on the right side of the Jade Iron Condor should be at least 25-30% of the total premium. This helps protect against potential losses in case the market goes up.
๐ On a chart, the Jade Iron Condor strategy would have a call side and a put side, creating a spread that hedges against each other and provides a cushion against market movements.
๐ The Jade Iron Condor offers a wider profit zone compared to a normal iron Condor.
๐ฐ The Jade Iron Condor is suitable when expecting the market to go sideways or be neutral.
๐ The Jade Iron Condor helps to mitigate risk on the call side during a bull market.