Skip to main content

Kal's Option Trade of the Week - IWM Skewed Iron Condor

The market finally had some movement over the last few weeks and volatility has spiked a bit in the indices.

Since I always like to have trades on in indexes, this seems like another good time to throw something on. 

We'll go the the index with the highest volatility right now, which is IWM, and throw on a Skewed Iron Condor. A Skewed Iron Condor just means we are moving one side (either the Put Side or the Call side) of the Iron Condor closer to the stock price than the other side. 

Why would we do that? We do that if our assumption is that we believe there is a higher chance of the stock price moving in a certain direction. In this case, my assumption is that IWM is closer to its bottom than its top over the next 46 days. With that assumption, I believe there is a better chance it will end higher over the next 46 days than lower. 

How do I turn that into a Skewed Iron Condor? Since I believe the stock has a higher chance of moving up rather than down, I will move the Put Side of the Iron Condor a little closer to the stock price and give the call side more room (by moving it a little farther away from the stock price).

Watch the video to get the details.

Hope that makes sense, and happy trading!

Kal :)

Trading Risk Disclaimer 
All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. This is not an offer to buy or sell stocks, forex, futures, options, commodity interests or any other trading security.

Popular posts from this blog

Google’s AI Struggles vs. Oracle’s Strategic Stability

Gap's Stylish Comeback: Stock Soars on Strong Earnings and Trendy Makeover

Apple’s AI Gamble at WWDC: What’s at Stake