Trading Iron Condors to Capture Earnings Volatility

Trading Iron Condors to Capture Earnings Volatility | Tradecraft

Рет қаралды 5,138

2 ай бұрын

Options involve risks and are not suitable for all investors. Please read the Characteristics and Risks of Standardized Options carefully before trading. Characteristics and Risks of Standardized Options: bit.ly/2v9tH6D
Understanding trading strategies in theory is one thing, but building and managing actual trades is where real traders are made. In this episode of Tradecraft, we walk through the nuances of setting up and managing iron condors over earnings announcements as a way to potentially capture the implied volatility crush on three different stocks using the paperMoney® feature of the thinkorswim® platform.
Subscribe to our channel: bit.ly/SubscribeCharlesSchwab
Check out more Insights & Education from Charles Schwab: www.schwab.com/learn/
Connect with Charles Schwab:
Facebook: / charlesschwab
X: / charlesschwab
Open an account with Charles Schwab: www.schwab.com/open-an-account
[0524-J5C2]

Пікірлер: 12

@rkrao8582 2 ай бұрын

Best ❤. We need more of these videos. Very high quality. Keep going.

@CharlesSchwab 2 ай бұрын

Sounds like you might enjoy our Advanced Options webcast playlist: kzfaq.info/sun/PL8a6s5nq1lPSDssUncLhFlWKBQD6f4tg3&si=uhGNXcY03S-W89Os ^BW

@banzai.renaissance 2 ай бұрын

This is so very well done. Thank you

@divamisi24 2 ай бұрын

Awesome video, thank you for sharing.👍

@lloyddev 2 ай бұрын

Excellent video! Thanks for the clear explanation

@arturobaldomero3836 2 ай бұрын

❤❤Excellent.

@avieda 21 күн бұрын

Great video! Thanks for sharing. One thing bothers me a lot. At 4:29 you say that we might be in a very big loss, it looks like it contradicts the max loss I see when I confirm and send the order. Can you elaborate on this?

@CharlesSchwab 15 күн бұрын

The risk profile of any strategy doesn’t take into account the potential risk of assignment. It only shows the value of the trade would be at certain price points on expiration. So, in the case of the iron condor, if the price was to rise above the short call, but below the long call, you may be assigned. This means you would have to deliver 100 shares of the underlying stock per every short call contract. If you didn’t deliver those shares, your account would then be charged the shares and you would be short 100 shares per contract. If the stock rallies while you’re short those shares, you would start to see losses in your account. Theoretically, a stock could rally to infinity, which would result in infinite losses. You can learn more about short selling stock from this video. ^RC: Short Selling: Can You Profit from Falling Stocks? kzfaq.info/get/bejne/fNSSrK6asaethmg.html