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Iron Condor Traders Cash with $GOOGL
Option traders of all levels should be using time type of option strategy that takes advantage of time decay. This is the part of the extrinsic value of an option that decays away a little bit at a time until expiration. This can work alone as a stand alone strategy or in combination with other […]
Option traders of all levels should be using time type of option strategy that takes advantage of time decay. This is the part of the extrinsic value of an option that decays away a little bit at a time until expiration. This can work alone as a stand alone strategy or in combination with other strategies to offset long option decay.
In our Time Bandit Option Trading service we use Iron Condors to act as a stand alone strategy to collect premium over short periods of time. This past week our subscribers to advantage of Alphabet($GOOGL) options that expired on May 25th. In our May 17th webinar subscribers sold the 1052.5-1120 Iron Condor for about $1.85. This means that they bought the 1042.5 puts and 1130 calls and sold the 1052.5 puts and 1120 calls. For each spread that was entered, the option trader wold have collected around $1.85 per spread or $185.00.
As you can see from the chart below we never tested either short strike and the stock sat between the strikes to close at $1,075.73 on May 25th. It basically sat around it’s 100 day moving average(red center line)!
Subscribers let the options expire worthless and collected the full premium of $185 for each spread they entered!
