Thursday, June 19, 2008

IRON CONDOR - RUT



Analyze the above Iron Condor example.

for this analysis, the diagram shows you the credits for each vertical spread, the Bear Call & the Bull Put credits.

For a 10 dollar spread, credit will be 1.35 which is a conservative 13.5% return.

If you trade 1 contract, the credit is 135 for 1000 of margin.

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